Philippine Construction & Design Magazine July-Aug. 2013 (Issue #7)

July - August 2013 Philippine Construction&Design | 1

THE MAGAZINE FOR CONSTRUCTION PROFESSIONALS

PHILIPPINEVOL. 2. No. 7 July-August 2013

Edwards Marcs enters power savingmarket with new technology

The 50-storey One Central stands strong on 95 columns

Madrigal-Bayot builds The AddressThe Trion Towers adapts the unique tri-axial design

Developing an effectivemarketing plan

2 | Philippine Construction&Design July - August 2013


The Philippine Construction & Design is an e-magazine published monthly by Saiber Media Inc., with business address at Unit 3332 City & Land Mega Plaza, ADB Ave. cor. Garnet Rd., Ortigas Center, Pasig City. Official website is www.philippineconstructionanddesign.com., e-mail address: [email protected]. Publisher is William

L. Ogan. For your editorial, online subscription and advertising placement, please contact Telefax (632) 687-1430 Direct Line: (632) 542-1930 Please send your comments and suggestion’s to [email protected].

Copyright ©2012 All rights reserved.

contentsIssue No. 7 -2013

CONSTRUCTION NEWSCalendar of Events

News Roundup

Risk Management

International Report

Association Updates

Understanding Construction Project Risk Management

Monorail for Surabaya Port: Pelindo III

San Miguel and Ayala keen on Laguindingan Airport O&M

5 prequalify for LRT-MRT ticket system bidding

July-August 201302

04

18

21

10

Supplier's Profile30Edwards Marcs enters power saving market with new technology

FEATURES

28Developing an effectivemarketing plan

12The 50-storey One Central stands strong on 95 columns

Project Report -Public

26The Trion Towers adapts the unique tri-axial design

Project Report -Private

14 Cover Story

CONSTRUCTION MANAGEMENT

Price Movement41Month-on-Month Price Movement

36

32

Products & TechnologyHusqvarna RS 8500 D

Contract Management‘Force Majeure’ and problems in its wake

Madrigal-Bayot builds The Address

Cover Photo: July-August 2013 Issue

28

21

Sales & Marketing Management

41

12

9

12 1432


CAlENdAR OF EvENTS

International EventsBUIldING INFORMATION MOdElING SUMMIT INdIA Jul 25, 2013Construction technologies are advancing and the Indian AEC market is maturing to adopt these advancements and set benchmarks in the Indian construction sector. BIM is a technology that has much to offer to the real estate world – it can help the architectural, engineering, construction and real estate industries to maintain a pattern of continuous improvement, especially if its insight can be integrated at both the project and organizational levels.Venue: Hilton Mumbai International Airport, Mumbai, India

3Rd ANNUAl MOdUlAR CONSTRUCTION & PREFABRICATION ASIA 2013Aug 1, 2013The 3rd Annual Modular Construction & Prefabrication Asia 2013 conference will bring together all of the major stakeholders who are Asset Owners, Engineering Consultants, EPC Contractors and Fabrication Yards to a high-level forum centred on the current challenges faced by the modular construction of large-scale projects across multiple industries.Venue: Amara Singapore , Singapore

MOSBUIld 2014 April 1-4 and 15-18, 2014MosBuild is the largest annual international construction exhibition in Europe and Russia with 'UFI Approved Event' status and one of the top five construction exhibitions in the world. MosBuild is supported by government, public organisations, political and public figures from Russia and other countries, and Russian and international media. The exhibition was staged for the 19th time in April 2013.Venue: Expocentre, V.V.C. Moscow

EvENTS | BUIldING & INFRASTRUCTURE INdONESIA 2013September 4-7 2013Indonesia is now the 3rd fastest growing economy amongst the world’s wealthy industrial countries and major emerging markets (G20). To ensure that economic growth can rise to its potential infrastructure development is vital. More toll roads, power plants, railways, bridges and tunnels and improved harbours and airports, water & sanitation are needed. Plans to upgrade Indonesia’s infrastructure are expected to attract US$70 Billion of investment over the next 5 years stimulating a boom in the construction industry that is expected to grow at over 6.8% year on year.Venue: Jakarta International Expo

BUIldING & CONSTRUCTION INdONESIASeptember 11 – 14, 2013This biennial trade show showcases the latest in building and construction equipment and materials.Venue: Jakarta, Indonesia

ONEBUIld 2013 October 9 – 12, 2013OneBuild 2013 is specifically catered for the building, architecture and construction industry with the aim of moving forward the industry into a more promising outlook. Be it from foundation, framing to the exterior and interior finishing touches, OneBuild 2013 serves as the one-stop sourcing ground where the latest offerings in building materials and structures, architectural products as well as construction equipment and technology will be gathered under one roof to cater the every need of the building projects. Venue: Putra World Trade Centre (PWTC, Malaysia

JAPAN HOME & BUIldING SHOWOctober 23 - 25, 2013 Building Construction Material, Equipment and Sanitary wareJapan Home & Building Show is the largest trade event in Japan dedicated to housing and building industry. It will be an aggregation of builders, agents, contractors, manufacturers and distributors who will share their innovative ideas for better home and building construction. There will be a showcase of building supplies and parts, support machinery.Venue: Tokyo, Japan

BUIldING & CONSTRUCTION MyANMAR 2013October 31- 2 November 2013 With a great need to build and upgrade the majority of its infrastructure, including housing, schools, shopping malls, hospitals, roads, bridges, railroads, airports, seaports and industrial zones. Myanmar offers opportunities in construction, construction equipment, affordable housing developments, high end housing development, extractives-driven industrial construction and transport infrastructure.“The new government is facing a historic opportunity to jump start the development process and lift living standards. Myanmar has a high growth potential and could become the next economic frontier in Asia.” The International Monetary FundVenue: Myanmar Convention Center, Yangon

BATIMAFranceNovember 4-8, 2013This annual event features the latest products and technologies catering to construction professionals.Venue: Paris, France

GREEN URBANSCAPE ASIA November 7 – 9, 2013GreenUrbanScape Asia will be a dynamic marketplace for delegates and trade visitors from the region to discover the very best and latest landscape and urban greenery solutions from around the world. They will also be able to learn the best practices, discuss the latest industry trends and network with academics, practitioners and policymakers at the International Skyrise Greenery Conference and the International Landscape Industry Association Summit. Venue: Singapore Expo, Singapore

CON-BUIld vietnamDecember 2013This annual trade show and exposition features construction machinery, vehicles, equipments, construction materials, technology and services.Venue: Ho Chi Minh, Vietnam

local EventsPHIlCONSTRUCT 2013 November 6 – 9, 2013 PHILCONSTRUCT is one of the biggest trade events and the no. 1 construction expo in the Philippines. It showcases the latest products, services, and technologies, attracting over 60,000 industry professionals each year. Its attendees include top contractors and developers, architects, interior designer, engineers, government officials, trade offices, and more. Venue: SMX Convention Center, Philippines



NEWS ROUNdUP

Five of nine groups interested in bidding for the P1.72-billion automatic fare collection system (AFCS) for Metro Manila’s train network made the cut for prequalification, the Department of Transportation and Communications (DOTC) announced yesterday.The five are:

1. AF Consortium, composed of BPI Card Finance Corp., Metro Pacific Investments Corp., Smart Communications Inc., Globe Telecom Inc., AC Infrastructure Holdings Corp., and NTT Data Corp.

2. Comworks Consortium, composed of Comworks Inc., Philippine Gaming Management Corp., Kaohsiung Rapid Transit Corp., Acer Inc., Infochamp Systems Corp., and Berjaya Philippines, Inc.

3. E-Trans Solutions Joint Venture Inc. Consortium, composed of Tera Investments

5 prequalify for lRT-MRT ticket system bidding

Inc., Eastwest Banking Corp., Sagesoft Solutions Inc., Pilipinas Micro-Matrix Technology (PMT Joint Venture) Inc., and Pulsar Avancer Technologie Inc.

4. Megawide-Suyen-Eurolink Consortium, composed of Megawide Construction Corp., Suyen Corp., and Eurolink Network International Corp.

5.SM Consortium, composed of SM Investments Corp., BDO Capital and Investment Corp., Advanced Card Systems Ltd., and Pentacapital Investment Corp.

The four disqualified groups are: Lamco Consortium, Mega Lucky United Consortium, MTD-PRLM Consortium, and San Miguel Transport Solutions Consortium.

The AFCS Project, approved in November last year by President Aquino and the National Economic and Development Authority (NEDA) Board, will introduce a smart card-based technology similar to the Octopus card system in Hong Kong.

The proposed contactless ticket system is designed to make the commute for passengers of Light Rail Transit (LRT) and Metro Rail Transit (MRT) “more convenient and efficient,” DOTC said.

The prequalified groups will have until August 30, 2013 to prepare their bids for the project.

The AFCS Project is one of DOTC’s first offerings under the Public-Private Partnership program.P1.6B power

projects for Mt. Province

The Mt. Province will get four hydro power plants worth P1.675 billion to energize the province by 2016. The Board of Investments (BOI) has approved four projects, which have a combined power capacity of 10.55 megawatts (MW) and will generate a total of 39,947,000 kilowatt-hours (kWh) of electricity annually.

The four hydropower projects are: 1) The P2.4-MW Dicapan hydropower project in Barangay Lubon, Tadian worth P369.8 million with an aggregate annual capacity of 8.697 million kWh; 2) The 2.75-MW Upper Siffu hydropower project in Barangay Balangao, Natonin, worth P440.7 million with annual production of 9.63 kWh; 3)The 3-MW Lower Siffu hydropower project, also in Barangay Balangao, worth P426.8 million with 9.9 million kWh in capacity and; 4)The 2.4-MW Tanudan hydropower project in Barangay Lias, Barlig worth P449 million with projected capacity of 11.72 million MW.

The BOI said each project will employ 17 personnel and all four will start operations in March 2016.

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Even in our modern times, there are millions of Filipino families who live in the dark due to limited access or difficulty in affording electricity. In order to address this, MyShelter Foundation pioneered “Isang Litrong Liwanag” in the Philippines, a local implementation of the Liter of Light global movement . The program aims to provide an ecologically and economically sustainable source of light to underprivileged homes. This initiative involves the use of empty one-liter soda bottles as makeshift solar bulbs which amplify the rays of the sun and act as light bulbs during the day. This provides an innovative way to bring illumination inside the house without using electricity.

Sika, a world leader in construction chemicals, supports this Liter of Light program internationally and in the Philippines. Given the need for a reliable and strong sealant and adhesive to keep these solar bottle bulbs in place, Sikaflex® was selected based on its unparalleled performance. “Our company was tapped to provide a quality sealant and adhesive that can withstand extreme weather conditions. Sikaflex® is certainly equal to the task,” explained Sika Philippines General Manager Jason Baradas.

“We are thankful that Sika has formed a partnership with us, to help shed some light both literally and figuratively,” remarked MyShelter Foundation founder Illac Diaz. “Our target is to make a small dent on the 20 million Filipinos who do not have access to light.”

According to Diaz and Baradas, the partnership of SIKA Philippines and MyShelter Foundation aims to reach thousands of Filipino homes in 100 areas around the country in 2013.

“Because Sika believes in building trust, we will continue to support worthwhile causes like the Liter of Light project and other programs similar to this in the years to come,” Baradas stated

SIKA Philippines helps seal the light


dPWH construct access road to amazing rock formation in Ilocos Norte

The amazing white rock formation in Burgos, Ilocos Norte will soon be more accessible as the Department of Public Works and Highways undertakes the construction of a road leading to this tourism destination. In his report to DPWH Secretary Rogelio L. Singson, DPWH Region 1 Director Veniedo Reyes said that works are in full progress for the concrete paving of 3.466 kilometers access road to the Kapurpurawan Rock Formation.

Reyes during his inspection, has directed DPWH Ilocos Norte 1st District Engineer Nestor Pasion and Project Engineer Angelito Dian to take advantage of the summer season to facilitate completion of the project as scheduled by October 2013 for a five (5) months construction period. Also integrated in the P70 Million fund for the concrete paving works of carriage way and shoulder are construction of line canal, installation of box and pipe culverts, slope protection works, provision for coconet or the installation of coco fiber erosion control net, and safety devices such as guard rails and warning and informative signs.

Listed as one of the projects under the so-called “Convergence Program for Enhancing Tourism Access” of the DPWH and Department of Tourism, the construction of Kapurpurawan Road will make adventure to the white creamy colored limestone structures and products of a weathering and sedimentation a lot more fun. The whole formation has a smooth curving iconic shape head, cradle and the resting dragon.

Kapurpurawan actually comes from the Ilocano word ”puraw” which means white. The place can be reached an hour and a few minutes travel north of Laoag City and offers a breathtaking view of the different rock shapes that can completely amaze tourists who visit the place.

Meanwhile, Secretary Singson said that more key infrastructure will be put in place in order to support the development in the tourism sector as the Aquino administration place importance to tourism as a key factor in helping re-distribute the wealth from those in the upper class who frequently travel down to the medium and lower class who makes a living in the tourism trade to realize the inclusive growth vision.

This move is also expected to generate job opportunities living in these tourism destinations. To further boost tourism by making road travel more fun in the Philippines and confident of the DPWH’s capability to realize completion of key infrastructure projects nationwide based on the National Tourism Development Plan at the right cost, right quality and right on time, the government continues to provide ample investment for vital access roads for tourism areas, airports, and seaports, and other infrastructure requirement pouring P7.987 Billion in CY 2012, P11.950 Billion in 2013 and will rise to whopping P18 Billion in CY 2014.

First Gen Corp. is allocating at least $100 million (about P4.08 billion) to finance its natural gas and run-of-river hydro projects this year.

First Gen president Francis Giles Puno said yesterday the company’s investment for this year will go primarily to the San Gabriel expansion in Batangas and the pre-development of the run-of-river hydro projects in Mindanao.

“When you look at our capex (capital expenditures) for the year, we’re looking at over $100 million focused on the San Gabriel Avion project and also the startup of the run-off river hydro plants,” Puno noted.

First Gen is planning to construct a 100-MW natural gas-fired plant alongside the company’s existing 1,000-MW Sta. Rita and 500-MW San Lorenzo natural gas facilities in Batangas.

The 100-MW plant is the first of three phases being planned as part of the San Garbiel expansion. The first phase is expected to be completed by next year.

First Gen is also undertaking three run-of-river hydro projects in Mindanao totaling 63 MW.

The hydro projects include the 30 MW Puyo and 10 MW Cabadran projects, both located in Agusan del Norte, and a 23 MW Bubunawan project in Bukidnon.

First Gen plans to bid out the projects’ engineering, procurement and construction (EPC) contracts this year.

Puno said the budget allocated for the hydro projects this year will be used on developing access roads as well as site preparation work.

He noted that First Gen aims to start full construction of the run-of-river hydro projects by next year.

Published on Thursday, 09 May 2013 00:00 Written by RICHMOND MERCURIO

First Gen budgets P4B for natgas, hydro projects


NEWS ROUNdUP

The Department of Transportation and Communication (DOTC) has prequalified all seven consortia that submitted bid documents for the country’s second largest airport, Mactan-Cebu International Airport. The project is estimated to cost P 17.5 billion.

The DOTC said in its invitation to bid that the financial and technical auction is set Aug. 2, 2013 and the awarding is scheduled on September 17.

The seven groups include: -MPIC-JGS Consortium Inc. composed of Metro Pacific Investment Corp., JGSummit Holding Inc., and ADLMS-MCIA. The group has tapped Aeroports De Lyon to fulfill the operation and maintenance (O&M) of the airport while

dOTC pre-qualifies all Mactan bidders

MPIC will fulfill the financial requirements.; -AAA Airport Partners consortium led by A2 Airport Partner and ADC & HAS Airport Worldwide Inc.. The O&M will be undertaken by Houston Airport System while Aboitiz Equity Ventures will take care of the financial and qualification requirement.;

-Filinvest-CAI consortium which is composed of Filinvest Development Corp., and Changi Airport Mena Pte. Ltd. The group has tapped Changi Airport Saudi for the O&M and Filinvest land Inc., Filinvest Alabang Inc. and Cyberzone Properties Inc. will comply with the financial requirements.;

-The group of San Miguel Corp. and Incheon led by Incheon International Airport

Corp., Optimal Infrastructure Development Inc., Mactan Capitana Holdings Inc., and Skyline Incuvest & Co.. Incheon International Airport Corp., will fulfill the O&M while SMC will secured financial requirement.

- The first Philippine Airport a consortium of First Philippine Holding Co., and Infratil Asia Limited, the group tapped the Wellington International airport Ltd., NZ airport Limited and Infratil Limited Philippine for the O&M and for the financial requirement it will be fulfill by First Philippine Holdings Corps.,

- PremierAirport Group was composed of SM Investment Corp., Citabel Holding Inc., ZunichAirport International AG , Prospector International holding Inc., For the O&M, Flughafen Zunich AG , “The company that will fulfill the Financial requirement SM Investment Corp and Citabel Holding Inc.,”

- GMR Infrastructure & Mega wide Consortium., the lead member, Megawide Construction Corp., other member, GMR Infrastructure Ltd ., (GIL) “The entity will ful the O and M is Delhi International Airport Ltd. Together with the GMR Hyderabad International Airport. The entities will fulfill the financial requirement is Megawide Construction Corp., had no relationship with an airlines”.

Source: Malaya

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Gov't mulls setting up contingency fund for PPPThe government considers establishing a

contingent liability fund worth at least P30 billion to ensure the sustained financing of public-private partnership (PPP) projects.

In a statement, National Treasurer Rosalia De Leon said the government is managing its contingent liabilities but has submitted the proposal to the Department of Budget and Management (DBM).

"This fund will take care, if ever, some of the glitches of our PPP projects. This is really more of a contingent measure, just in case. This is a standby fund for all those contingent liabilities," said De Leon.

As of now, the government is assessing the value needed for the construction of a new four-kilometer four-lane toll road from the junction of Daang Reyna and Daang Hari in Las Pinas/Bacoor, Cavite to the South Luzon Expressway (SLEX) as well as for the construction of about 9,300 one-storey and two-storey classrooms in Regions I, III and IV-A as part of the PPP for School Infrastructure Project (PSIP) Phase I.

De Leon said setting up a contingent liability fund also aims to ensure credit rating agencies of the ability of the government to fund its projects and programs.

Last March, the Philippines bagged an investment grade rating from Fitch Ratings.

Earlier this month, it also bagged the same rating from Standard & Poor's Rating Services (S&P), another reputable debt watcher.

The National Treasurer said they will source funds from the unprogrammed funds of the government or will tap local fund sources for the contingent liability fund, though she stressed that this will be "fiscal neutral."

According to De Leon, the contingent fund will ensure that the government will not be held accountable should any financing "breach" in the PPP projects emerge in the future.

"This only means that we are prepared, there is readiness, that we are proactive in terms of handling all these contingent liabilities," she said.

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Manila Water to complete P6B sewerage plantManila Water Co.

Inc. expects to complete by September the P6.1 billion sewerage plant in Western Bicutan, Taguig.

Manila Water Project Delivery Group OIC Director Estelita Orodio said that the P6.1 billion Taguig North Sewage Treatment Plant (STP) will reduce the pollution load in Metro Manila’s river systems, particularly the Pasig River which flows into the heavily-polluted Manila Bay.

“Environmental protection is a major advocacy of Manila Water. We have pioneered a number of initiatives to promote this cause and the construction of more STPs like this is part of our major contribution in the drive to clean-up Manila Bay,” Orodio noted.

Orodio said that the plant is a 75-million-liters-per-day underground wastewater treatment facility.

She noted that Manila Water is also looking at developing the land directly above

the plant into a public and recreational park.Once the project is completed this

September, Manila Water will now be operating a total of 37 sewage treatment plants and 2 septage treatment facilities with a total wastewater treatment capacity of 500 million liters per day.

Manila Water is the East Zone concessionaire of the Metropolitan Waterworks and Sewerage System providing water and wastewater services to more than 6.2 million residents of portions of Quezon City and Manila, Marikina, Pasig, San Juan, Mandaluyong, Pateros, Makati, Taguig and several towns in Rizal Province.

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ONE TOUGH BOND. SIKA Philippines donates boxes of Sikaflex® – a high quality sealant and adhesive – to support MyShelter Foundation’s Liter of Light Program. Present at the Liter of Light pavilion in Luneta Park were (from left-right): Ross Hernandez, Sika Commercial Services Manager; a Liter of Light project leader; Illac Diaz, MyShelter Foundation Executive Director; Shiela Cortez, Sika Executive Assistant; Alex Santos, Sika Marketing Specialist; and Jason Baradas, Sika General Manager.


NEWS ROUNdUP

The Millennium Challenge Account-Philippines (MCAP) targets to award the contract for the last segment of the Secondary National Road Development Project (SNRDP) by July.

Signed in 2010, the SNRDP is under the Aquino government’s five-year $4340million compact with the Millennium Challenge Corp. (MCC) of the US government. It was earmarked a $214.4-million share in the MCC grant.

In a text message to Business World, MCAP Communications Specialist and Spokesman Andy B. Saracho disclosed that the evaluation of bids for Contract Package 2 of the SNRDP is still ongoing and that they expect to have the contract signing by late June or early July.

The bidding process for CP 2 was opened in November 2012.

MCA-P to award the last segment of SNRdP by July

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The Office of the President is now evaluating a new proposal for the concession of the Subic-Clark-Tarlac Expresssway (SCTEx), according to Arnel Casanova, president and chief executive officer of the Bases Conversion and Development Authority (BCDA).

Casanova said that while traffic has been improving, SCTEx continues to be a losing proposition grossing only over P1 billion a year when the government has to pay over P1.6 billion a year to the Japan Bank for International Cooperation (JBIC) which financed the tollroad. “But we are paying the principal faithfully,” Casanova said.

Operational expenses also reach P270 million. The proposal pertains to a new revenue sharing scheme of 50-50 between BCDA and the operator of SCTEx, the Metro Pacific Tollways Corp. from the previous 70-30 in favor of MNTC.

The scheme would determine BCDA’s capacity to keep up with the payments with JBIC which loaned P31 billion to the government to build the 94-kilometer tollroad. “We are waiting for the approval of the President,” Casanova said.

SCTEX not earning enough from tolls

Last February 28, four local and international firms submitted their bid proposals for the segment.

CP 2 involves the rehabilitation of a 63.8-kilometer road from Barangay Tinani to San Julian/Sulat Municipal Boundary and is estimated to last for 1,095 days. It is the last of the four SNRDP segments that the MCAP will award this year.

The P802-million CP 1 was auctioned off in July 2012 and was awarded last September to the joint venture of DM Consunji, Inc. (DMCI) and CM Pancho Construction. It was the shortest of the four segments and covers a 16.3-kilometer stretch of road from Buray Junction to Barangay Tinani in Paranas.

Bid out in June 2012, the P2.45-billion CP 3 was awarded to the consortium of Leyte-based MAC Builders and Oingjian Group Co., Ltd. last September. It covers 64.6-kilometer of road from San Julian/Sulat Municipal Boundary to Balangkayan/Llorente Municipal Boundary.

The longest of the four segments, the P2.2-billion CP 4 was awarded two weeks ago to the joint venture between Korean shipbuilding firm Hanjin Heavy Industries and Construction Company Philippines, Inc. and Yakal Construction. It covers the rehabilitation of 79.5 kilometers of road from Balangkayan/Llorente Municipal Boundary to Guiuan, Eastern Samar.

DPWH issues notice of award to SMC for NAIA toll road project

Source: PPP CenterThe Department of Public Works and

Highways (DPWH), recently issued its Notice of Award (NOA) to Optimal Infrastructure Development Inc., a subsidiary of San Miguel Corp. for the Ninoy Aquino International Airport Expressway Project (NAIA). SMC recently seized the deal to build and operate the 7.5-kilometer elevated Ninoy Aquino International Airport Expressway.

SMC will hand over to government the P11 billion upfront payment it offered in their bid within 30 days from May 6, 2013, the issuance of the NOA. SMC will operate the airport toll road for a period of 30 years, including the 36 months for the completion of the detail design and construction of the project.

The signing of the project is slated for June 2013, while the target construction period be from the December 2013 to August 2015.

The NAIA Expressway project is a strategic part of the envisioned Metro Manila Urban Expressway System to be built around a network of expressway serving Metro Manila. The airport toll road will link two major expressway serving as the north-south backbone of the eastern and western sections of Metro Manila, and support the development of the PAGCOR Entertainment City located along the Manila Bay reclamation area. It will well connect all three terminals of the NAIA Complex and ease the flow of traffic to and from the airport.

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-AA+ABy Flornisa M. GitganoMonday, April 22, 2013

THE Cebu Provincial Board yesterday endorsed the proposal of Cordova Mayor Adelino Sitoy to rename the first Mandaue-Mactan Bridge to Serging Osmeña Bridge.

Seven Cebuano congressmen will be furnished a copy of the resolution for them to sponsor a bill to rename the first Mandaue-Mactan Bridge.

The congressmen who will get a copy of the resolution are Reps. Eduardo Gullas, Pablo Garcia, Pablo John Garcia, Benhur Salimbangon, Ramon “Red” Durano VI, Luigi Quisumbing and Arturo Radaza.

Serious Mayor Sitoy, who was present during the PB session yesterday, recalled that when the former governor Osmeña proposed a bridge connecting Mactan to mainland Cebu, the latter was laughed at. Sitoy said nobody gave Osmeña’s idea a serious thought.

Sergio “Serging” Osmeña Jr. served as governor of Cebu in 1951. He was then elected as Cebu City mayor for three terms, from 1955 to 1963.

Sitoy said naming the first bridge Serging Osmeña is a way to honor the bridge’s proponent.

He recalled that, in the 1970’s, there was a resolution passed by the PB naming the first bridge as Mandaue-Opon Bridge.

But, he said, it should be superseded in favor of Serging

PB approves ‘Serging Osmeña Bridge’ proposal

Osmeña.“If the second bridge is named as Marcelo Fernan, then there is no reason that the first bridge would not be named as Serging Osmeña,” Mayor Sitoy told the PB.

Contributions According the resolution authored by PB Members Jose Ribomapil Holganza Jr. and Arleigh Sitoy, Osmeña made “historical contributions to the Cebuanos by his good deeds and attributes.”

In terms of naming streets and structures and public places, Section 13 of the Local Government Code of 1991 stated that the “Sangguniang Panlalawigan may, in consultation with the Philippine Historical Commission (PHC), change the name of such structures within its territorial jurisdiction.”

PB Member Joven Mondigo suggested that the board also consult the PHC regarding the matter.

Sitoy said the Lapu-lapu City Council will pass a resolution complementing the resolution passed by the PB.

He suggested that the PB also request the Lapu-lapu City Council to pass the same resolution.

Holganza believes that this could be one of the agenda that will be tackled in the next Congress.

Last March 12, the Mactan Cebu Bridge Management Board approved Mayor Sitoy’s proposal.

By A Web design Company

Clark Water Corp., the water and wastewater operator of Clark Freeport and the Clark Special Economic Zone, has earmarked P1.26 billion to fund its upcoming water infrastructure and service reliability improvement projects over the next five years.

The company said the new projects being

Clark Water spends P1.26B for infralined up are aimed at meeting the anticipated growth of water requirements in Clark until 2017.

As of end-2012, the total service connections of Clark Water stood at close to 2,000, some 29 percent of which represents the commercial connections and 6 percent corresponds to industrial connections.

According to the water utility firm, 53 percent of the budget or P639 million

will be allocated for the construction of 15 deepwell pumping stations with chlorinators and installation of more than 25 kilometers of transmission lines.

It added that 28 percent of the allocated amount or P338 million will be used for the expansion of its wastewater treatment lagoon along with the installation of 12.5-kilometer of sewer lines.

The remaining capital investment, Clark Water added, will be utilized for the construction of new treatment plants and the development of long-term water sources.

“We have developed our plans and programs to support the vision of Clark Development Corp. while addressing the current and future needs of existing locators even as we continue to attract more investors in Clark,” said Jess Laigo, chief operating officer and general manager of Clark Water.

Last year, the company spent P42 million in building a new treatment plant, new distribution lines, and a deep well to augment its current water capacity.

“We will continue to invest in water and wastewater projects, improve service and operational efficiency, and implement environmental projects to remain as a sustainable partner of Clark Development Corporation and its locators,” Laigo said.

Clark Water is a subsidiary of Metro Manila’s East Zone water concessionaire Manila Water Co. Inc. It was formed in partnership with Clark Development Corp., the administrative and governing body of the Clark Freeport Zone and the Clark Special Economic Zone.

Clark Water’s system losses by the end of 2012 was at 12 percent.

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ASSOCIATION UPdATES

A pre-bid conference for the Automated Fare Collection System (AFCS) Project was conducted by the Department of Transportation and Communications (DOTC) last June 11, 2013 at the DOTC Office in Mandaluyong City.

The agency announced that the five prequalified groups for the AFCS project were the 1) Metro Pacific and Ayala-led AF Consortium; 2) Comworks Consortium from Taiwan; 3) E-Trans Solutions Joint Venture, Inc. Consortium; 4) Megawide-Suyen-Eurolink Consortium; and 5) the Sy-led SM Consortium. The DOTC held one-on-one sessions with the prequalified bidders.

The AFCS project aims to modernize and improve the overall passenger experience at the LRT and MRT systems. It involves the decommissioning of the old magnetic-based ticketing system and replacing the same with contactless-based smart card technology on LRT Line 1 and 2 and MRT Line 3.

The project will also introduce a smart card-based technology to make the travel for train commuters more convenient and efficient. It is a recipient of the Project Development and Monitoring Facility (PDMF) of the Public-Private Partnership (PPP) Center.

Based on the scheme, the private sector will operate and maintain the fare collection system for a concession period of 10 years.

DOTC prepares prequalified bidders for AFCS project

PICE Palawan Chapter Board Meeting Officers and members of the Philippine Institute of Civil Engineers (PICE)-Palawan chapter led by its president Maru Marco are shown engaged in a board meeting and photo opportunity in Narra, Palawan on May 18, 2013.

San Miguel Corp. and Ayala Corp. are unlicensed contractor, planning to participate in the bidding of the contract to operate and manage (O&M) the P7.8-billion Laguind-ingan Airport in Misamis Oriental, another project that the government will implement under its public-private partnership (PPP) program. In a statement, San Miguel presi-dent and COO Ramon Ang said San Miguel Corp. will join the bidding if the govern-ment puts the project on the auction block.

The Laguindingan Airport recently replaced the Lumbia Airport in Cagayan De Oro. All the four airlines operating from Lumbia--Philippine Airlines (PAL), PAL Express, Cebu Pacific and Zest Airways--already transferred to the Laguindingan Airport last June 15, which now serves as the new gateway to northern Mindanao.

In the interim, the Civil Aviation Authority of the Philippines (CAAP) will operate the airport using Visual Flight Rules until an Instrument Landing System is installed by May 2014.

The Laguindingan facility currently sits on a 400-hectare property and features a 2.1-kilometer runway and a 7.184-square meter passenger terminal building which ac-commodates around 1.6 million passengers every year.

Aside from San Miguel Corp., Ayala Corp. also expressed interest to join the auction for the Laguindingan Airport's O&M.

San Miguel and Ayala keen on laguindingan Airport O&M

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ASSOCIATION UPdATES

HONG: 11th Likha AwardeeArchitect Froilan L. Hong, FUAP,

was awarded by the United Architects of the Philippines the LIKHA Gold Medal Award. The awarding was the highlight of the 39th UAP Annual Na-tional Convention Honor Dinner (Gala Night) last 18th April 2013, preceded by the elevation of twenty two new members to the College of Fellows, the most number in the history of the Organization.

It is only the 11th such award since 1982. “This award is the highest dis-tinction that may be bestowed by the National Board as endorsed by the College of Fellows upon a Fellow. The award is given in recognition of his (or her) having impeccable moral character, having highest standards of professional and ethical conduct, ex-cellence and prestige in the practice of the architectural profession and dis-tinguished contribution and service to UAP. He (or she) must have exception-al achievements and active participa-tion in the concerns of the community, government and country.” (Items in italics are ours, with due respect to the committee involved.) LIKHA award-ees to date are as follows:

Norberto M. Nuke, fuap, 10th Likha Awardee, 2009, Edilberto F. Florentino, fuap, 9th Likha Awardee, 2006, Geronimo V. Manahan 8th Likha Awardee 2005, Francisco T. Manosa, 7th Likha Awardee, 2003, Angel Lazaro, Jr., fuap, 6th Likha Awardee 2000, Manuel T. Manosa, Jr.,fuap, 5th Likha Awardee 1996, Cesar V. Canchela, fuap 4th Likha Awardee 1995, Gabriel P. Formoso, fuap, 3rd Likha Awardee 1990, Le-andro V. Locsin, fuap, 2nd Likha Awardee 1987, Felipe M. Mendoza, fuap, 1st Likha Awardee 1982.

Civil Construction Business Opportunities in Timor-leste

The Philippine Embassy in Dili-Timor-Leste, through the Department of Public Affairs (DFA), invites contractors to take advantage of the business opportunities in Timor-Leste's civil construction sector.

Leads on these opportunities are available at the official website of the Ministry of Finance (www.mof.gov.tl). Concrete leads/projects open to international tenders are also available on its eProcurement portal. The Timor-Leste State Budget 2013 Special Funds Book 6 which is also available on the said website provides the budget allocations for all 2013 infrastructure projects.

Most of the major infrastructure projects of Timor-Leste usually receive funding from the Asian Development Bank, the World Bank and the Japan International Cooperation Agency. The Embassy notes that Filipino company R.D. Interior Junion Construction has an ongoing road network project in Tu.

PPP considered for Batman 1 projectThe $1.2-billion, 105-kilometer Batangas-Manila (Batman 1) natural gas pipeline project is

being considered by the Philippine National Oil Co. (PNOC) whether it can be implemented under the public-private partnership (PPP) scheme. According to PPP Center executive director Cosette Canilao, the PNOC has tapped the PPP Center's technical assistance fund "to undertake the study and structuring of the Batman 1 project for a possible PPP."

The study on the project could be done by the end of this year or the first quarter of 2014, said Department of Energy (DOE) Oil Industry Management Bureau Director Zenaida Y. Monsada. Upon completion of the study, the PNOC will start bidding out the first phase of the Batman 1 project which involves the construction of a 100-kilometer pipeline that will transport and supply natural gas to target markets along its route, from Batangas, Laguna, Cavite to Metro Manila.

The project is seen as a critical infrastructure that could boost the natural gas industry of the country by reducing its dependence on oil.


PROJECT REPORT-PUBlIC

The battleground for stiff competition among big property developers like Megaworld Corporation remains to be in the prime commercial districts of Makati, Ortigas, the Fort, Libis and in Cebu City, Davao and Baguio City.

For the past five years, eight big developers have been racing to become the leader in condominium and building development industry. Each has its own brand to offer. Ayala Land has its Park Terraces as its premium product. Robinsons Land has The

Luxuria line of high-end condominiums. SMDC has its Sun, Wind, Light and Shell Residences scattered in the metropolis. The Megaworld boasts of luxury residential and commercial condominiums that blend strength, beauty and functionality.

One Central is one residential condominium that bears all these qualities. Situated along Sen. Gil Puyat Avenue and near the tail-end portion of Ayala Avenue is one of the high-end projects of leading developer Megaworld. This is the 176th project of the company. In fact, around 85-90 condominium projects of Megaworld are situated in the Makati area alone. One Central, towering at 170.3 meters, has 50 storeys and expected to be finished late this year.

“There were 69,300 square meters of floor area that we needed to build from basement to roof deck. Lots of things needed to be done because this building is eyed to be one of the most high-end condominiums in Makati,” explained Mary Alvarez, one of the onsite engineers of EEI, the project’s contractor.

One Central is now structurally complete after more than 22 months of construction and only the architectural works remain undone. It will be ready for turnover early this 2013, according to Allan Brilliante, another EEI engineer.

The ground beneath Ayala Avenue from where the building sits is pure adobe. The engineer said their backhoes didn’t have a hard time forming the foundation at three meters. She said the rock-solid formation has the strength of between 2,000 to 3,000 psi compared to the hardest CHB at only 1,200 psi.

80% mat; 20% footing Eighty percent of One Central is on mat foundation and only 20

percent are footing foundation. “Mat foundation is three meters deep with 32mm and 36mm steel supporting the structure. The cranes we used were with breakers instead of clamps attached to the backhoes,” Alvarez explained to Philippine Construction and Design.

The condominium is built with five basements. According to the engineer, the four or five-level basement structure is intended as

The 50-storey One Central stands strong on 95 columnsMegaworld’s 176th project sports a unique boomerang shaped design

By Ed Velasco


parking spaces. Each level can accommodate 156 vehicles and built with 3.5-meter elevation.

Providing support to the mat foundation is 32mm steel for the columns and floors. Around 30 percent of the steel is 16mm, according to Alvarez.

Size 32-inch steel was also used in the portion where footing foundation was done. Smaller steel was used mostly in mat areas except in portions where the cistern is located to provide extra support for the building’s weight.

Can withstand magnitude 7-8 quake When asked how strong the condominium is when an

earthquake occurs, Alvarez said it can withstand an earthquake intensity 7 or 8 Richter.

EEI, one of the top five contractors accredited by the Department of Public Works and Highways, is also building three other Megaworld projects at The Fort—Uptown Bonifacio, 8 Forbes Town and Le Grande.

Each column of One Central is poured and not pre-cast because pouring, considered as an old-school system of building the most durable support of the building, is more durable than pre-cast.

Strength and safety “This structure is strongly durable as the strength of its 95

columns, shear walls, floors and beams don’t go below 8,000 psi,” she explained.

In fact, each of the columns has 10,000 psi; shear walls have 10,000 psi; floor, 8,000 psi; and beams, 8,000 psi. The shear walls are strengthened because these are where the four high

speed elevators of the condominium are located.Each floor has four fire exits. Each fire exit has fire hose aside

from the numerous sprinklers located every eight meters mounted on the ceiling. “I’m not sure about the distance but I’m sure it has plenty. No need to worry because the Makati inspection team is so strict when it comes to structures like these,” Alvarez explained.

It also has one fire detector per floor capable of detecting smoke of as far as 50 meters away. Every room of the 708-unit condominium is divided by solid walls known as spraycrete, a higher version of shotcrete.

Spraycrete has 20 percent more concrete than concrete hollow blocks or shotcrete, thus making the structure safer from fire. It also has aluminum cladding that is 4mm thick which is also a fire suppressant.

Aside from the spraycrete walls have steel reinforcement that serves as double protection from fire. Each slab has a homogenous-style finish while the façade are done in granite finish.

The project had no major problems with regard to safety

and accidents. So far, only two incidents of minor burns from welders were recorded and they were immediately given medical treatment.

Avant garde designThe architectural design of the condominium was done

by a Filipino firm Gregorio Oregenes and Associates. The design consultant is American Preben Kent. For the structural consultancy work, Megaworld chose the prominent Ove Arup + Partners, the same firm that built Petron Mega Plaza in Makati, the Canton Tower, Marina Bay Sands in Singapore and Kurilap Bridge in Brisbane, Australia to name a few.

The boomerang shaped tower prides itself of a very elegant, glass-sheathed lobby adorned with Old English paintings and intricately designed chandeliers by interior design consultant Gettys Chicago. The latest projects of Gettys Chicago are the Westin Abu Dhabi and the Swissotel Chicago.

Elevator façade is protected and designed in granite stones, making it truly capable of loading 20 persons plus that ultra-modern look, according to the engineer. The ground floor of the condominium will be its main selling point as it will have 4.9-meter elevation.“The ground floor will have a hotel-like lobby with elaborate designs and fixtures like chandeliers that’s why it has to be higher than other floors,” the engineer explained. The rest of the floors have only 3.4 meters elevation.

The project also sources its construction materials and supplies from big and reliable companies known for high quality products. Cement is supplied by LaFarge, steel by Phil Steel; paint by DutchBoy; and adhesives by Bostik.

When it comes to being environment friendly and energy saver, One Central is also eco-friendly because it was designed to use compact fluorescent lamps (CFL) and LED (light emitting diode) lighting. Both advance lighting systems will enable the owner to save up to 70 percent in power consumption.

“Definitely, only lights that require less power and more lumen will be entertained here,” she said.

One leading supplier of high tech and energy saving lamps, Megaman Lighting Phils., said once a structure chooses energy saving lamps it doesn’t have to adopt any other measures that aim to protect the environment.

“Having a light that has very little mercury content and uses 70 percent-80 percent less electricity is the best protection and care you can give to Mother Nature,” concludes Ailene Navarez, Marketing Manager of Megaworld.

“Mat foundation is three meters deep with 32mm and 36mm steel supporting the structure. The cranes we used were with breakers instead of clamps attached to the backhoes”-- Engr. Mary Alvarez, onsite engineers of EEI


COvER STORy

“What other condominiums can offer in terms of amenities is also offered here but I think we surpassed expectations with regard to the structural strength of the building”

---Engr. Janice Ellaga,



The answer lies on the structural strength of the building; the core of what the condominium is made of. Oftentimes, buyers are more interested in the visible amenities like the swimming pool, the gym, the spa, or the deck garden. But the most important thing to consider is how the building was made and where it stands.

The Address at Wack-Wack along Shaw Boulevard near the gate to Wack-Wack Golf and Country Club in Mandaluyong City is a 32-storey condominium built on solid ground.

Developed by one of the pioneers in the property development business, Madrigal-Bayot Development Corp (MBDC),The Address is the latest addition to the string of high-end, high-rise projects of MBDC.

The contracting company employed by MBDC was Monolith Construction Development Corporation, considered as one of the top 50 among the over 5,000 accredited contractors of the Department of Public Works and Highways. Construction management and structural designs were done by Jose Aliling & Associates, a veteran construction management firm with projects like the Citibank Tower, JG Summit Centre, World Finance Tower and the Urban Bank Plaza, among others.

Solid structure“What other condominiums can offer

Madrigal-Bayot builds The AddressAn exclusive Wack-Wack enclave built on solid ground

Condominium living has its many perks with all the amenities available under one roof. Convenience, security and an elegant lifestyle are but a few of the positive attributes found in many condominiums. So, one may ask “What makes one condominium different from the other?”

in terms of amenities is also offered here but I think we surpassed expectations with regard to the structural strength of the building,” Engr. Janice Ellaga, one of the engineers working at The Address told Philippine Construction and Design. Ellaga said that the 32-storey condominium stands on solid ground as its foundation is buried on adobe rocks.

Incidentally, based on historical records, the adobe used in building Fort Santiago came from Mandaluyong and nearby Makati areas. But given that fact, Monolith

Construction, with over two decades of experience in construction, wanted to be sure the project will be strong so they decided to use 32 inch-diameter steel on putt foundation buried three meters deep.

“As the stone beneath is so hard no need for matt foundation. The 32-inch steel will work like it’s piled on matt foundation,” Ellaga explained. No steel smaller than 14 inches were used in the construction of the condominium.

Aside from having solid adobe beneath, the location of The Address has the highest elevation in Metro Manila, with Shaw Boulevard at 75-100 feet above Manila Bay level, and is 50 feet higher than Makati and Bonifacio Global City in Taguig. Because of this, the condominium is considered flood-free.

Mandaluyong has no history of deep flooding, which is rare in Metro Manila, according to an atlas written by Paulo Alcazaren, a noted architect-columnist.

By Ed Velasco


COvER STORy

Putt foundationEllaga said the most durable portion

of the project is in its putt foundation where over 40 sets of 32-inch diameter steel is concealed in pure concrete. Also strengthened by 32-inch diameter steels are the post tensions of the building.

Installation of tendons was also applied especially at the corners of the basement, according to the engineer. “In every civil project all over the world, it is the foundation that is really strengthened because it carries the entire strength of the building,” she said.

With 32-inch steel buried on putt foundation plus the post tensioning, Ellaga said, even a strong earthquake of up to magnitude 10 will not cause any portion of the building to fall or collapse. “So far, no project by Monolith has been damaged by earthquake,” she explained.

The engineer said that specifications of the project’s structural designs were strictly adhered to and no portion of it was

deleted. “Those who want to know can look at the numerous inspection notices we have and that we have passed all inspections and done according to plans submitted,” she declared.

By using high grade materials, MBDC assures condominium buyers that their investments are worth the value as well as the safety of the building is guaranteed. “That’s how we value dwellers. We don’t want them to worry. They can leave their worries behind during an earthquake or a powerful typhoon. They are in a solid structure. No room for mistakes here because MBDC hired strict inspectors every time they poured cement or put up beams,” the engineer added.

10,000 PSI for foundation; 6,000 for floors

Ellaga said that approximately 80 bags of 40-kilogram cement are used for every column of the condominium. According to Engr. Ryan Higera, Finishing Engineer of The Address, there are 50 columns in all. Each column has 10,000 psi strength and each floor has 6,000 psi strength.

Cement used is the standard Holcim brand for general construction as there is no portion of the project that is frequented by water.

The strength, steel size and foundation are similar to those found in other high-

end condominiums like The Bellagio, The Venice and Eight Forbes Town of Megaworld; Blue and Green Residences of SM Development Corporation; and projects of Eton Properties of the Lucio Tan Group.

“They can be assured that what are on the plan as to materials specifications were strictly followed. Not a single detail of the architectural plan was deleted,” Ellaga continued.

Asked if they used any new technology not yet being used in the country or any other safety measures, Ellaga said “We used the same technology like those used in building the highest man-made structure in Abu Dhabi. There were no manual pouring of cement and the workers use harnesses and elevators while working on the 25th to 32nd floor. We didn’t sacrifice people safety while doing this.”Safety measures were always adhered to like the wearing of helmets, gloves and masks for welders and safety shoes.

The project also used wall sidings called shotcrete, solid walls (not hollow blocks) using special kind of cement.

11-month concrete pouringThe construction of the foundation was

meticulously done to assure the strength of the building will not be compromised. Batching trucks loaded with cement

“So far, no project by Monolith has been damaged by earthquake”---Engr. Janice Ellaga,


worked for almost eight hours a day from March 2010 to February 2012 to complete the foundation works.

“That’s why instead of the usual 14 to 18 months project duration, it took us more than two-and-a-half years to finish this,” the engineer explained. Construction of the project started in March 2010 and completed last September 29, 2012.

As of now the project is already structurally finished, with the entire 32-storeys now totally built. However, architectural work is still on going for to last for another 60 days, according to Ellaga.

Other portions of the work are being done like shotcreting, precasting of perimeter walls, installation of doors and windows and railings for the stairs from the four-storey basement to the top floor. Painting works were also done as scheduled.

Amenities and safety measuresThe Address is located about 150 meters

from Star Mall in Edsa; 2.5kilometer from Pasig; one kilometer from Ortigas; 3.3 kilometers from Cubao; 3.2 kilometers from Makati; and 6.5 kilometers from University Belt in Recto, Manila.

The Address at WackWack sports a sleek façade of different shapes and patterns. The architectural design maximized the use of glass, aluminum cladding of 4mm to 5 mm thickness, granite slabs and concrete.

It has a double-height atrium and a reception area adorned in natural stone,

wood veneer and glass, reminiscent of the Manhattan-inspired design.

For safety measures, each floor is equipped with three fire escape facilities where the standard requirement is only two. Water sprinklers are installed every 10 meters that dispenses water with 50 psi pressure, the same with regular fire hose used by fire fighters. The monowall used has a 4,000 psi that can withstand fire and earthquake.

The Address follows a 1:1 parking ratio per occupant with a total of nine levels of both above ground and underground parking facilities. Built in the structure are large air wells and wider corridors and hallways to allow excellent indoor ventilation. Lastly, the tower is equipped with three high-speed elevators.

“Furthermore, the building is designed with the most sophisticated technology and local expertise that ensured its

“In every civil project all over the world, it is

the foundation that is really strengthened because it carries the entire strength of the

building”integrity, beauty and safety that will transcend future generations,” as quoted from The Address website. The Address at Wack-Wack topped off on September 29, 2012.

---Engr. Janice Ellaga,


RISK MANAGEMENT

A project plan needs to be realistic as well as flexible to be able to quickly respond to change. Every project is subject to uncertainty and some variability.

Change is the only constant. Construction projects are complex and this complexity increases risk. To be successful requires communication and smooth coordination.

Projects in early civilization must have had some form of project management. Major construction projects like the great pyramids of Giza as well as the other Wonders of the Ancient Wonders would, due to their sizes and complexity, require some form of project management system or plan. What ancient engineers and project managers achieved without modern management tools is amazing and difficult to imagine.

Project management is both an art and a discipline. It involves the planning, organizing, controlling, and managing human and material resources throughout the life of a project. It involves managing the human and organizational constraints with its uncertainty and complexity, in order to see successful completion of the project

Projects are by their nature temporary in the sense that there is a definite beginning and an end date. The project manager is charged with the task of making sure that the project is successful. He deals with all the project requirements, the project team, and all stakeholders and other interested parties. He needs to motivate team members and others involved in the project to get the needed resources in order to make the project successful. He also needs to be an effective all around communicator.

Before the 1950s projects were managed mainly with experience and gut feelings as a guide with mainly Gantt charts or informal tools and techniques as additional assistants. The Gantt charts were developed by Henry L. Gantt, a mechanical engineer in the second decade of the 20th century. The charts were visual tools to show schedule and actual progress of projects. These were the accepted planning tools of the day. It is still in limited use today.

The 1950s saw the development of modern planning tools when two important planning tools were established. These were the Critical Path Method (CPM) and the Program Evaluation Review Technique (PERT). Both management tools were quickly adopted by a

number of other industries. During this period new techniques in cost management, project cost estimating and project cost economics were also being developed. Two major organizations; the International Project Management Association (IPMA) and the Project Management Institute (PMI) were established in 1967 (Europe) and 1969 (USA) respectively.

Key StakeholdersThere are three key stakeholders involved in

the construction process; 1) The owner team, 2) The designer team, and 3) The contractor team.

The owners, users, facility managing people, and other parties that have an interest in the project make up the owner’s team. The design team is made up with the architect as head, together with other consultants, and possibly sub consultants. The contractor team is composed of the primary contractor (normally the general contractor) and subcontractors, together with vendors and suppliers who possibly engages a number of primary as well as secondary consultants. These consultants may have a few sub consultants as well.

The process is complex with many organizations involved that do not necessarily have the same financial or business goals with the project and might even be incompatible. They may also have internal systems and procedures that are possibly incompatible with the overall project goal. Because the process is complex it requires a holistic approach to identify risks in the work place, process, and system to eliminate them. If it is not possible to totally eradicate all these risks, then at least to reduce the impact of these risks to acceptable levels. To do this requires project managers to look at the total process from the beginning, starting with when the owner decided to build the facility up to the time of completion of the

Construction projects are by their very nature complex. Managing a construction project requires an understanding of not only design and construction but also of management techniques. A construction project involves goals, systems, procedures, etc., as well as people, resources, expectations, promises, contracts, schedules, budgets, plans, coordination, supply chains, stakeholders, etc., etc. The system created to manage the flow of information; resources, people and decision are filled with potential risk.

Understanding Construction

Project Risk Management


construction process,As in any human endeavor, people are

an important element in this mix. Their capabilities, skills and motivation can both increase or decrease the associated risks. All stake holders can also play a role in the sense that their influence, agenda and involvement can impact the risk situation as a whole. Naturally with more people involved the greater risk for broken communications links and other dangers increase exponentially.

In order to manage these risks basic construction management elements need to be reviewed for possible embedded dangers. The project management’s major risk is to maintain work accomplishment with project schedule. This means that project management needs a system that will ensure that a project will get built within the contractual time frame. The systems will include the control of flow of information that ensures the adequate and timely delivery of equipment, materials and manpower.

The Project ManagerThe project manager is responsible for the

success of any project. Project managers need to be able to accomplish project objectives (meaning timely deliveries), maintain budgets, and deliver the expected quality. They need to deliver success on time and every time.

The project manager is like an orchestra conductor that makes sure each instrument plays at the right time, in harmony with the appropriate volume in order to make music. Otherwise the result will be a cacophony of ‘noise’.

Since every project or endeavor starts with a vision, the project manager needs to be clear on the project’s goal and objectives. To facilitate the project’s success the project manager needs to articulate this to all team members. The project manager needs to plan a robust strategy, sets up objectives, determines key success factors, and

establishes progress goals as well as systems to manage the project.

Since project management essentially involves people it is necessary for these people to have defined roles and responsibilities within the project team. The project manager essential needs to get the “right” people for the project. The project manager is responsible for the success of the project and to succeed, he needs the “right” people, at the “right” time and at the “right” positions.

During the project start-up the project manager sets the tone, reiterates goals, defines the roles and expectations that all will start positively. To succeed the project team needs to be able to work effectively together. But at the same time the project team must also be able to work well with people outside the project who are stake holders.

In construction are a number of key groups, namely the owners, project users, designers and consultants, the contractors and subcontractors, suppliers, and workers. All need to work effectively together in cooperation in order to be able to complete the project on schedule and within budget. To be able to succeed, the project manager needs to secure and manage commitments. Thus the project manager needs to effectively manage the supply team as well as other supporting functions and their stakeholders.

Project ConstraintsThe first and probably most important step in

any project is knowing the scope and objectives of the project. Once project objectives are clearly defined, inherent constraints will become obvious. Constraints are a part of any project. To be sure of success constraints will have to be identified and then effectively addressed. Constraints that are not initially identified and addressed will appear later in the project and cause challenges and problems, wasting time and resources.

Potential conflicts are present in the stated objectives with regard to the scope of the project; like the project cost involved, time requirements, and quality desired. There are constrains that are also imposed on human, material and financial resources. Such conflicts need to be addressed and resolve at the start of the project by making the needed trades-offs or finding alternative solutions.

Just as important is to know what is not included in the scope of the project. Lacking clear definition and understanding during inception the project will suffer diversions and waste of time and even possibly doom the project. An important area to examine is the development of the budget after project objectives and workflows have been finalized

The Project TeamInasmuch as the project manager is charged

with the success of the project makes it necessary for him or her to influence the selection and assignment of the “right” team members. Having the “right” people at the “right” time is crucial to the project success. Providing team members to be able to function effectively as members of the team shall then be the primary responsibility of the project manager

Besides the project team there will be others working in various departments on project related activities that are necessary for the success of the team. The project manager needs to understand group dynamics to better integrate seamlessly all efforts to ensure the project success.

During the onset of a project, there is invariably a bit of confusion and structure because all team members are in a hurry to begin. Unless corrected this may prove counterproductive and will result in inefficiencies and waste time as well as resources as the project plods along. Taking the time up front to clarify things and set up organizational systems as well as procedures will improve efficiencies and accelerate achievements. Teams that succeed have a clear understanding of expectations and boundaries.

It is normal for teams to undergo a series of developmental stages. These stages maybe described as forming, storming, and performing. This evolutionary process ideally begins with a group of individual which develops into a cohesive, efficient, high performing and well functioning team.

The team is at its best when it is at its performing stage. The team leader makes sure that all understand the capabilities, skills, and values everyone contributes to the team.

Planning starts with breaking down the project into units of work which are then further broken down into units of activities. These units of activities are further broken down into units of tasks. It is then necessary to determine the sequence of these tasks and their logical interrelations, interdependence and logic ties. Can an activity start with a previous one or sometime after, or can it not begin until the previous activity is completed? This establishes the sequence of events that cannot be shortened which is called the “Critical Path” of the project schedule. The activities along this path need to be completed to get to the end.

The next step is to determine the manpower and equipment required to build the project. The skills required of the people involved in each activity to together supervisory needs necessary. Milestones for financial procurement requirements and information are then identified. The times should hopefully meet the contract requirements, and that the resources needed are within budget parameters and meet the operational plan.

In as much as projects shall have multiple supply changes and subject to external influences, the project manager needs to respond with agility and with buffers planned for common variations and risk management for special ones. Such buffers include project, feeding, capacity, and cost for ordinary variables. These variations results from individual’s failure to plan diligently, execute and deliver. The human element forms the greatest risks. Understanding and capably understanding it and thus dealing with the human factor will greatly make the managing of a project easier and more successful.

Based on an article by Peter G. Furst (Author, Public Speaker, University Lecturer)

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INTERNATIONAl REPORTS

The government is speeding up the construction of five inter-provincial motorways, which will cost 267 billion baht (PHP 350 billion) and span a combined length of 705 km which is to be completed by 2020.

The projects are among 13 motorways nationwide to be built under the Highway Department with 3 roads to be funded by 2 trillion transport loan. Two of these 13 motorways have already been completed. They are the 82km Bangkok-Chon Buri Road and the 64km Eastern Outer Ringroad.

Director-general Chula Sukmanop of the Office of Transport and Traffic Policy and Planning announced that these three include the 196km Bang Pa-in-Saraburi-Nakhon Ratchasima Road, which will require investment of 84.6 billion baht. This project’s environment impact assessment (EIA) was approved in 2006.

The Highway Department completed the project’s design in 2008 and early this year the cabinet approved a budget of 6.6 billion baht (PHP=1.3 Baht) for land expropriation and compensation and 77.97 billion baht for construction.

The second project to be financed by the loan funds is the 98km Bang Yai-Kanchanaburi Road, which will cost 55.62 billion baht, including 5.2 billion baht for land expropriation and property compensation.The EIA process and design of this project has been finished.

The third motorway is the 32km Pattaya-Map Ta Phut Road, costing 16 billion baht. The investment includes 1.8 billion baht for land expropriation and property compensation. Its EIA is expected to be completed by this year.

Mr Chula said the three motorways will be completed in the next three years.

The two other prioritised motorways are the 118km Nakhon Pathom-Cha-am Road, with an investment budget of 44.1 billion baht, and the 206km Bang Pa-in-Nakhon Sawan Road, which will cost 37.3 billion baht.

These motorways are expected to be completed by 2020.

The EIA of the Nakhon Pathom-Cha-am project has been approved, while the EIA of the Bang Pa-in-Nakhon Sawan project is yet to be completed.

Construction of 5 Thai motorways 2020

deadline speeds up

Monorail for Surabaya Port: Pelindo III

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(Bloomberg Photo) The roomier successor to Surabaya’s Tanjung Perak port requires an efficient way of transporting containers when it opens for business in 2014.

The Automated Container Transporter (ACT) that will connect Tanjung Perak Port and the under-construction Teluk Lamong Port in Surabaya is to be constructed probably this year by operator Pelabuhan Indonesia III and construction company Adhi Karya. The project valued at Rp. 2.5 trillion (US$ 257 million) will transport containers on a 5.6 kilometer elevated, single-railed track between the old and the new port, avoiding traffic congestion in the surrounding area. “We will realize it soon,” said Husein Latif, the commercial and business development director of Pelindo III

“This is the first in the world, a monorail that will transport containers fully automatically,” Husein said.According to Husein the companies, which are both state-owned, have completed a feasibility study covering financial, commercial, technical and legal aspects of the project. He said they could begin construction in the next 12 months.

The construction of Teluk Lamong Port is intended to help reduce the burden on the overcrowded Tanjung Perak Port. The cost to build the Teluk Lamongan site is estimated at Rp 3.4 trillion, with its operation set to begin in 2014. Industri Kereta Api (INKA), the engineering arm of the national rail company, has been hired to design and produce the ACT. INKA will use up to 70 percent of domestic raw materials for the ACT train, Husein said. The ACT will run on electricity to save costs on fuel, he added,

while its elevated track will not impede any existing infrastructure.

Pelindo III secured a $65 million loan from Australia-based ANZ bank to finance the construction of Teluk Lamong Port. The loan from ANZ Indonesia matures in five years and carries a 5.35 percent interest rate.

Tanjung Perak is the country’s second-busiest seaport and serves as the main gateway for shipments of raw commodities from eastern Indonesia, with capacity to accommodate 3 million 20-foot equivalent units (TEUs) a year. Pelindo III estimated that Tanjung Perak would have to deal with 3.8 million TEUs a year in 2014. Teluk Lamong is expected to take over most of its activities because it will be able to accommodate much larger vessels and provide more space for containers.

High logistics costs — a result of poor infrastructure — have long been considered a crucial factor constraining Indonesia’s economic potential and exacerbating the development gap between provinces across the country.

The government has estimated that the country’s logistics expenditure would be equivalent to 27 percent of gross domestic product this year. The MP3EI forecasts gross domestic product increasing more than sixfold over the next 14 years, requiring Rp 4,000 trillion in investment.

Source: Investor Daily



Salty concrete halts construction of China’s tallest building

Artist depiction of China’s tallest building the Ping’an International Finance Center

Construction has now been halted on Ping’an International Finance Center due to concerns regarding the quality of the concrete used. The building was designed by US firm Kohn Pedersen Fox and has been under construction since 2009. Concrete made with unprocessed sea sand has been found in at least 15 buildings under construction in Shenzhen – including what will be China’s tallest building when completed – putting them at risk of collapse.

An industry-wide investigation made public late March discovered that 15 buildings in the city were partly constructed from concrete made with sea sand instead of river sand, including the 660-metre-high Ping’an International Finance Center, expected to be the second tallest building in the world.

While cheap sea sand offers cost-saving opportunities for contractors, the salt and chloride present in it can corrode steel reinforcements over time and ultimately cause a building to collapse.

Like many Chinese cities, Shenzhen is undergoing a frenzy of construction activity, with architects including OMA and Mecanoo working in the city.

OMA recently won a competition to design a financial office tower, the firm’s second building in the city after the Shenzhen Stock Exchange. Mecanoo are working on a cultural complex in the Longgang district, while the Futian District – an area that’s larger than Manhattan – is being redesigned by SWA Group to create pedestrian areas and green spaces. Source CNN

The Engineering Institute of Thailand (EIT) warned that the government’s ambitious Bt350 billion water and flood management plans will likely fail to be completed within the five-year deadline due to environmental hurdles and opposition from communities over land expropriation.

The flood-management plans for dams, reservoirs, a massive diversion channel and retention areas would be required to undergo environmental and health impact assessments which will take at least two years to complete for each project, the EIT said.

The massive projects will require the cooperation of local communities and will take up large amounts of land. These processes, especially environmental assessment, will take more than five years to negotiate, particularly the land deals, with locals in order to avoid lawsuits, said EIT chairman Suwat Chaopreecha.

Thai engineers warn flood plans doomed to fail

According to Suwat, “Generally, the contractors need at least two years to negotiate with local people and ask them to move from their land. It is not so easy to do that and start a massive project like this.” He was speaking at a seminar of water experts and engineers to discuss the pros and cons of the terms of reference (ToR) of the water and flood management plans approved by the Cabinet.

“I predict that this enormous water project will be impossible to complete within five years,” Suwat said. “If Deputy Prime Minister Plodprasob Suraswadi, who oversees the Water and Flood Management Commission, can complete all these projects within the deadline, we will create a monument to pay the tribute to him as he has done something good for country.”

As an example of how long such mega-projects can take, Suwat cited the Mae Wong Dam in Nakhon Sawan, which has been in the planning stages for more than 30 years but has yet to be approved by the Office of Natural Resources and Environmental Policy and Planning (ONEP), due to incomplete environmental assessments.

Bancha Kwanyeun, associate professor and dean of Kasetsart University’s Faculty of Engineering, said the biggest project - the flood diversion channel - also faces the biggest hurdles, because of the massive amount of land needed. “It won’t be easy to tell local people to accept the compensation for the land expropriation and locate to another area,” he said.

Instead of building the diversion channel, Bancha suggested eliminating bottlenecks in the river, such as in Ayuthaya’s Bang Ban district. “It is not necessary to build the flood diversion channel. All government has to do is destroy the river bottlenecks and improve the river’s capacity to drain water,” Bancha said.

Other projects, such as the “monkey cheek” water-retention areas will also face opposition from local residents. Hannarong Yaowalert, president of the Foundation for Integrated Water Management, said the water and flood management plans are likely unconstitutional, and he will submit a petition to Plodprasob to review the bidding processes for all the projects. Source: NATION

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While many residents are eagerly awaiting the next subway line to ease the agony of commuting, another kind of woe has arisen because of the construction - that of the cost to Bangkok’s cultural heritage, in particular in the city’s treasured old quarter with valuable old buildings which form part of the national heritage are being put at risk A section of the Blue Line from Hua Lamphong to Phutthamonthon - coming in at a hefty price tag of 49.9 billion baht - will pass through old city precincts in Samphanthawong district, and that is where the danger lies, according to local residents. The district is home to clusters of architectural heritage sites in the Yaowarat, Song Wat and Werng Nakhon Kasem areas.

The train route will include stations in the inner historical zones including at Wat Mangkon Kamalawat, one of the country’s most-visited Chinese temples which is more popularly known as Lengnoeiyi Temple, and Wang Burapha. Residents affected by the train project point out that the ongoing construction of the subway requires the demolition of old and architecturally unique buildings.

But recognising the need for sustained measures to protect the living culture

Blue line subway construction puts old historical buildings at risk

largely embodied by the old buildings, they have called on City Hall to help conserve the historical places they grew up with in their neighbourhood. They have appealed to City Hall’s working group which sets directions for preserving and developing areas adjacent to the old Rattanakosin periphery.

The residents and the working group, chaired by Kriangphon Phatthanarat, chief of the Bangkok Metropolitan Administration’s Department of City Planning, met for the first time last February to thrash out guidelines for minimising the effects of the train project on the landscape.

The meeting came after the residents formally asked Bangkok governor Sukhumbhand Paribatra to amend city planning regulations which they insist do not address the problems that urban residents have with infrastructure projects such as the subway slated for construction in historical zones, particularly Samphanthawong and Pomprap Sattruphai districts.

The BMA also needs to review the permission it grants to developers of commercial land in the radius of 500 metres from the Blue Line stations sitting

in the old city quarters. “In essence, they want the city office to consider revoking permission in areas or communities with historical importance,” said Surachet Srisuchart, head of the city zoning and restoring section under the Department of City Planning.

The residents are also pressing the BMA to motivate people to conserve their centuries-old neighbourhoods and fund activities to restore old buildings, a move which has led to the establishment of the Kriangphon working group. The group is expected to give advice on future city planning as it is made up of land developers, historical zone conservationists, scholars and residents.

The group is also open to representatives from the Mass Rapid Transit Authority of Thailand which operates the subway trains, the Department of City Planning, the Association of Siamese Architects, King Mongkut’s Institute of Technology (Thonburi campus) and local communities in the three districts. However, the group’s activities are not proceeding as smoothly as it would like, Mr Kriangphon said.

Despite a city ordinance limiting building heights in historical areas, Samphanthawong and Pomprap Sattruphai are classified as commercial districts, according to the BMA’s map of land use. The conservation measures reached by the Kriangphon working group include listing historical sites, banning the demolition of buildings in those areas and allowing local people to have more of a role in setting their cultural zones.

The worry over the construction of the Blue Line shows that many local residents in historical districts are increasingly aware of their historical roots. “The panel will talk with all parties and forward its findings to the city’s administrators as soon as possible,” Mr Kriangphon said. Source: Bangkok Post

Blue Line construction intrudes on history

Bouygues to build Thai solar plantTwo subsidiaries of Bouygues

Construction have signed a US$50m (£33m) contract for the design, construction and maintenance of three photovoltaic power plants in the Tak and Sukhothai provinces of north-east Thailand. Bouygues Thai and Bouygues Energies & Services are carrying out the work for solar energy producer Soleq Solar Thailand.

In total, the three solar farms will be equipped with more than 100,000 photovoltaic panels over 60ha and

will deliver annual production of approximately 45GWh, equivalent to the annual consumption of the households in a Thai city of 90,000 people. Each site will have peak power of 10MW. Bouygues Energies & Services and Bouygues Thai will be responsible for operating and maintaining the solar farms for a period of five years.

The design and construction works, which will involve 450 people on site at peak periods, has started and handover is scheduled for the end of 2013.

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The Ministry of Development through the Public Works Department is currently constructing the nation’s biggest dam capable of storing up to 100 million cubic metres of water to guarantee the supply of water to the Brunei-Muara District in the future, Borneo Bulletin reported.

Located in the Nyamukying area, the Ulu Tutong Dam, which is one of the many measures being pursued to improve upon the provision of clean water to residents in the Sultanate was revealed by the Minister of Development. Other water related projects include the Kargu Dam in the Belait District, which can hold up to 14 million cubic metres of water for residents of the district. The project costs $35 million.

He added that there are projects aimed at upgrading the water treatment plant, water tanks and the main water pipe to improve the water supply system to the nation.

One main project is the installation of a 65-kilometre water pipe from the Bukit Barun water treatment plant to Terunjing and Muara, which will guarantee a stable supply of water to Meragang, Tanah Jambu, the Mengkubau Housing Scheme and Pulau Muara Besar. The project which cost around

Brunei builds biggest dam$85 million is scheduled to be completed by 2015.

The ministry is also planning to implement Demand Site Management initiatives.

The minister highlighted that Brunei Darussalam has among the highest rates of average water usage in the world with 400 to 450 litres per person a day, compared to neighboring countries that have an average consumption rate of 200-250 litres per person a day.

To raise awareness on conserving water, the minister said, “A huge part of initiatives are based on cooperation among stakeholders and the general public”.

Among the planned initiatives are the implementation of a Water Conservation Pledge participated by a number of agencies from the public and private sectors.

Also in play is an annual programme between the Public Works Department and the Public Utility Board of Singapore, which is a platform for Brunei to develop better Human Resource Development and learn about best practices and technology for more efficient water management. Source The Borneo Post

Jakarta Deputy Governor Basuki Tjahaja Purnama (Ahok) announced the temporary cancellation of the construction of the Kampung Melayu-Tanah Abang-Casablanca flyover in South Jakarta. The postponement will effectively started in June. “We have to stop it for now. We don’t know how we will pay for it. If we continue to do it, where will we get the money from?” he said at the City Hall on Friday, April 19. The construction of the Rp 2.02 trillion (approximately US$ 208.06 million) project was stunted after a turnover of many official positions occurred in the Jakarta City administration before the project was completed. Ahok said that according to the DKI Government budget book, the project should have been completed by the end of last year. However, several things still need to be worked on. In order to make sure the project runs without any legal issues, Ahok requested the Audit Board of the Republic of Indonesia (BPK) and the Financial and Development Supervision Agency (BPKP) to audit the project. Even after the audit is completed, Ahok said the Jakarta Government may not continue the project. “It must be checked first. If we can continue, then we continue it. We’ll hold a tender if necessary,” he said. JAYADI SUPRIADIN

Casablanca Flyover Construction Halted

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Intelligence firm Timetric forecast a compound annual growth rate for the construction sector of 4.88 per cent between 2012 and 2016, a growth almost 5%. Singapore’s construction sector grew by a CAGR of 11.6 per cent from 2007 to 2011, and was worth £14.6 billion by the end of this period.

In contrast with much of the world, Singapore had a budget surplus in 2011, at 0.7 per cent of its gross domestic product. The country had unemployment of below 2 per cent in the third quarter of 2012.

Singapore’s government last year allocated £240 million to boost rail and road infrastructure nationwide. When the Downtown Line project is completed in 2017, it will be the longest driverless underground line in Singapore, used by 500,000 commuters a day.

Timetric said: ‘The increased public spending will not just boost infrastructure, but will have a positive effect on all construction markets in the coming years. Residential work, the largest market behind infrastructure, is expected to record a CAGR of 4.67 per cent to a value of £4.9bn by the end of 2016. The industrial construction market is forecast to post a CAGR of 4.27 per cent to a value of US$3.3bn.

Tim Bowder-Ridger, managing director at Conran and Partners, said the London-based practice was targeting more work in Singapore. ‘The Singaporean government has set aside a lot of money for infrastructure and that will have a substantial knock-on effect for the industry, according to Bowder-Ridger. ‘There is a lot of Chinese money in Singapore but the construction law is based on English law, and the language is primarily English.’ Source: Article by Greg Pitcher, AJ

Singapore construction set to boom with 5% annual growth

Evening view of Singapore

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Construction of Changi Airport’s Terminal 4 (T4) with a total estimated budget of S$1.28 billion is expected to begin soon. S$600 million is set aside for the construction of a two—storey building at the old Budget Terminal site. It will have a gross floor area of about 160,000 SM.

The remaining S$680 million will be for the construction of additional parking stands, supporting airfield infrastructure, security requirements, specialized airport systems, ancillary buildings and road and drainage works.

Changi Airport Group said that T4 will be designed with the flexibility to meet the operational needs of both regional full service and low—cost carriers. T4 will primarily handle narrow body aircraft and be designed to enable quick turnaround of flights. The transfer of passengers and baggage between T4 and the other terminals will also be provided for.

In terms of feel and ambience, T4 will be comparable to Terminals 1 and 2. Unlike the Budget Terminal, T4 will have aerobridges at its boarding gates. Departure and arrival immigration control and pre—boarding security screening will be centralized for more efficient

Changi Airport’s T4 to begin construction Controversial Cambodian dam readied for construction

Preparations has begun to build a controversial hydropower dam on the Se San River in Cambodia. The Lower Se San 2 Dam will be built downstream on the river, with an 8-kilometre-long wall and a reservoir that will cover more than 300 square kilometers. Once the waters rise, the surrounding Srekor village will be submerged.

The wall of the dam will block entry to the Se San River and to the Sre Pok River, affecting the breeding grounds for long-distance migratory fish that make up 40 percent of fish in the Mekong system.

The Lower Mekong Basin is shared by 65 million people in four countries. There are fears that hydropower dams will cause many among the 15-million-strong population of Cambodia to go hungry, as they eat more freshwater fish per capita than any other in the world.

A study published last year in the US Proceedings of the National Academy of Sciences assessed 27 dams that regional governments plan to build on tributaries of the Mekong. Dr Eric Baran, one of the authors of that study, says the Lower Se San 2 Dam will be the most detrimental for fish. "We found that the fish yield loss due to this dam would represent 9.3 per cent of the total fish yield of the Mekong Basin," he said. "So it's 9.3 per cent of 2.1 million tons - which is a gigantic amount. In other words, this expected loss represents around 200,000 tons per year, which is much more than the whole marine sector of Australia."

The Lower Se San 2 Dam will cost around $US800 million dollars and take five years to build. At least two more dams are planned upstream on the Se San River, along with another two scheduled for the neighbouring Sre Pok River; and one on the Se Kong River. Source Robert Carmichael, ABC

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Water buffalo from Srekor village wallow in the Se San River to escape the afternoon heat. In a year or so, all of this will have disappeared underwater. [Robert Carmichael]

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deployment of manpower and equipment.T4 will have more kiosks for self check—

in, self bag—tagging and self bag—drops. Bag sorting at T4 will be fully automated. The baggage handling system will be equipped with the latest technology to enable heavy and odd—sized bags to be handled with ease even by older workers.

The number of aircraft parking stands will also be increased. A 38—hectare land plot south of Terminal 3, which houses the airport nursery and reservoir, will be converted into an aircraft parking area to house 17 narrow—body and nine wide—body aircraft stands. An overhead vehicular bridge across Airport Boulevard will be built to enable buses and other airport vehicles to move from T4 to the aircraft stands.

Major drainage works, including the construction of a new reservoir, will be undertaken to prevent flooding in the event of a heavy downpour. A new road will be built to facilitate outgoing traffic from T4 onto the East Coast Parkway. A multi—storey car park with spaces for 1,200 vehicles will also be built next to the terminal.

T4 is expected to be ready in 2017. Source CAN/xq

Cambodia’s construction sector has attracted the investment of 1.53 billion U.S. dollars in the first eight months of 2012, a 74 percent rise compared with 881 million U.S. dollars at the same period in 2011, a report from the Ministry of Land Management, Urban Planning and Construction showed Monday.

From January to August last year, the ministry had issued licenses to 1,231 construction projects, down 16 percent from 1, 470 projects at the same periodthe year previous.

Lao Tip Seiha, deputy director-general of the ministry’s construction general-department, said that there was a remarkable rise in investment value this year. “The growth is a

Cambodia's construction sector attracts 1.53 USD billion investment in 8 months

good sign for the sector and reflects investors ‘confidence in Cambodia’s economic and political stability,” he said.

The licensed projects included condominiums, residential units, commercial buildings, hotels, casinos and garment factories.

According to the report, top 10 countries and regions investing in the country’s real estate and construction are South Korea, China, Britain, Thailand, Russia, Japan, Malaysia, China’s Taiwan, India and Vietnam.

Construction sector is one of the four pillars supporting the economy. The sector attracted 2,129 projects with a total investment of 1.7 billion U.S. dollars in 2011. Source English.news.cn


The Indonesia construction sector is expected to benefit with Indonesia’s ratio of investment to gross domestic product (GDP) reaching highest level in the past 18 years. Construction and toll road operators have been racing to expand their business to gain advantage from the momentum of increasing domestic economic activities as well as a multi-year investment plan initiated by the government that depends on strong cooperation with the private sector.

“The construction sector has contributed around 10% of Indonesia’s GDP since 2009, higher than the average 6-8% in 2001-2007. We believe that the construction sector could benefit from the multi-year trend in the new investment cycle,” international brokerage JP Morgan stated in a note to clients last November. The bank cited data from financial information provider CEIC that showed Indonesia’s fixed asset investment to GDP ratio standing at 33% last year.

The note was prepared by Liliana Bambang from JP Morgan Securities

Indonesia construction gears for growthIndonesia. Local brokerage SucorInvest shares the upbeat view. In a note to clients dated November 30, it said the strong growth expected in the construction industry “is mainly explained by robust infrastructure projects coupled with lower project delay or cancellation in the current strong economic environment.” The catalysts for stock price boosts in the construction and infrastructure sector were already apparent during 2011.

A major milestone was the approval of the National Land Acquisition Law by the House of Representatives which cut the time for acquiring land used for public facilities. The law was strengthened by a government regulation signed by President Susilo Bambang Yudhoyonon that set a maximum time of 583 days for the land acquisition process for public projects, detailing the procedures for acquiring land. Previously, no period had been set, meaning that if acquisition turned complicated, it could be stalled for years, with additional costs incurred due to legal proceedings.

As an archipelagic nation consisting of 13,000 ‘official’ islands and some 4,000 more spread over 5,000 km from Sabang off the northern tip of Sumatra to Merauke on the southeastern coast of Papua, the government has realized that connectivity is critical. Linking up resources, industries and people represents the key to more sustainable economic growth. In May 2011, President Susilo Bambang Yudhoyono launched a 15-year economic development master plan, known as MP3EI, which carves Indonesia up into six economic corridors.

Realizing the plan to develop these corridors will cost Rp4,000 trillion in investment, nearly half of annual national GDP. The funds are expected to come mainly from the private sector, with the aim of catapulting the country into the ranks of the 10 biggest economies in the world by 2025. Yudhoyono’s administration is aiming for a breakthrough after sluggish growth in investment in the years after the 1998 financial crisis.

During 2012, performance of construction and infrastructure-related stocks was positive, although some declined due to factors unrelated to the overall investment climate. Three state builders – Wijaya Karya (WIKA), Adhi Karya (ADHI) and Pembangungan Perumahan (PTPP) – enjoyed a strong increase in their stock price in the year-to-date period (see table). WIKA stocks rose by 157% to Rp1,570 as of December 11, ADHI by 253% to Rp2,050 and PTPP by 88% to Rp910. Financial earnings at the three builders were strong in the first nine months of 2012. Source Muhamad Al Azhari, webadmin.

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Investors from China and South Korea are studying a proposed Rp 7 trillion ($721 million) project to build a bridge linking the Riau islands of Batam and Bintan. Governor Muhammad Sani of Riau Islands said that investors from the two countries had submitted proposals to his administration to invest in the 6.9-kilometer-long bridge.

“Investors met us and inspected the location,” according to Sani. “We have forwarded the proposal to the National Development Planning Agency [Bappenas].”The Riau Island government has requested that the central government provide funding assistance for the bridge’s construction from the state budget.

Sani said that the bridge would accelerate economic development in the region. Local government bodies, including the

S. Korea, China Investors Considering a Role in New Batam-Bintan Bridge

Batam Industrial D e v e l o p m e n t Authority, have been asking the central government to build the bridge, and six others in the region, since 1990. Batam and Bintan’s growing populations are seeking smoother movement of people and goods between the islands.

Sani said the timing of the project, off the east coast of Sumatra, was undecided. Armida Alisjahbana, the minister responsible for Bappenas, said the central government had long promoted the involvement of the private sector via public-private partnerships, given the constraints of limited state budget ability to

Photo by: Batam Industrial Development Authority

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finance infrastructure development.Indonesia’s economy grew by 6.2 percent

last year, down on the 6.5 percent growth achieved a year earlier. The government has set a growth target of 6.5 percent to 6.8 percent this year, but analysts said slow infrastructure development will be a major constraint. Source Investor Daily


PROJECT REPORT-PRIvATE

49 storeys that blend well with the earth, water and sky elements

By Ed Velasco

F or property developer Robinsons Land, its fourth project at the burgeoning Bonifacio Global City (BGC) in Taguig City seems to harness the esoteric powers

of the triangle. Yes, you heard it right, The Trion Towers, composed of three 49-storey condominiums is laid out in a triangle formation in a one hectare property situated along 8th Avenue corner McKinley Parkway Street.

Magical or not, Robinsons Land is keen on providing its clients a condominium they can call their home that is structurally sound, uniquely designed and offers amenities for luxurious living. “When viewed from above, it creates an illusion of a triangle formation, thus living to its name ‘Trion.’ The shape suggests why it is named that way,” Engr. Gerry Abella, assistant head engineer of DDT Konstract, Inc. (DDTKI), the primary contractor of The Trion Towers.

The Trion Towers has the unique tri-axial design conceptualized by Asya Design Partner, a well renowned architectural firm with projects in the Philippines, Shanghai, Xiamen and Chengdu in China. It has been awarded for its unique and trendsetting architectural designs for six years by BCI Asia.

170 meters above groundTrion Towers stands at over 170 meters with

varied elevations for every floor ranging from

3.2-3.5 meters. According to Engr. Abella, the different elevations aim to give every floor free movement of air so that the use of air-conditioning will be minimized. This feature adheres to principles of green architecture where the use of minimal energy dovetails with innovative architectural designs.

The Trion Towers has a total of 748 units, five basements and four elevators per tower.

The first of the three towers was completed in 10 months while the second tower is now about 30 percent complete and the third tower has yet to start construction by the first quarter of 2013. Completion of the final tower will be in 2014.

More than an ordinary buildingThe engineer said the mission of the

Gokongweis, majority owner of Robinsons Land, is to deliver alternative condominiums that are not so expensive but of high quality. According to Abella the company wants to see the country surrounded by posh condos that not only the rich and famous can afford.

“They don’t believe that the condominium industry is dominated by just one big developer. Our company is always ready to take the challenges and that’s why this project is now almost half-finished,” explained Abella.

Abella disclosed that what was fully adhered to was the allowance given for live and dead weights and the strength of each floor, foundation and columns were not lower than 5,000 psi.

The ground on which the towers stand is adobe and Robinsons Land instructed DDTKI to construct a total mat foundation except in five-basement parking areas. The mat foundation is designed by Asya Architects, the architectural consultant, and

supervised by Salvador Jadie, an engineering consultant.

Building strengthDDT Konstract Inc., the official contractor

of Robinsons Land, has already earned the full confidence of the property company and as such no bidding was necessary to land the contract. “This is the 42nd project we did for Robinsons Land. We are their official contractor. Every project was no longer subjected to bidding as they already awarded them to us,” said DDT’s Engr. Abella.

Some of the projects built by DDTKI were Robinsons Xiamen, Robinsons Magnolia Residences and Robinsons Cyberscape Beta.

Total project cost of The Trion Towers is between P300 million to P400 million, according to the engineer. It has 60 columns with each bearing 8,500 pounds per square inch (PSI) strength. Each floor has a minimum of 5,000 psi while the foundation has 6,000 psi strength.

The contractor used 100 bags of 40-kilogram cement for each column, with a height of 3.1 meters per pouring and not precast. Engr. Abella said that precast concrete was used in its exterior panels and division walls for every end-unit.

Land preparation and clearing were limited to excavation works since no existing structures were present since it is predominantly grassland. DDTKI spent almost two months excavating the ground using heavy duty drills, backhoes and pay loaders.

Steel used for the foundation varied from 32-36mm and 12-mm sizes. To make the building more stable, the contractor used 36-mm steel for 70 percent of the steel mat foundation. Abella disclosed that the

The Trion Towers adapts the unique tri-axial design


foundation can even withstand strong earthquakes.

“Just think about the big steel and mat foundation we used and unit owners need not worry in the event of an earthquake of up to magnitude 9 because the building will not likely to collapse,” he said. Even the depth of foundation at 2.8 meters is a big factor in considering building sway when a quake occurs, the engineer said. Even during strong storm surges, the contractor had included in their computations the effect of wind and resistance.

Safety considerations Each floor of the building is divided by

CHB (concrete hollow blocks) and some are spray crete. Clustering of every unit is done via steel cladding to give it a posh look and more support in case of fire. Every wall is divided using 4-inch CHB.

Each floor has three fire exits and one fire sprinkler above the hallway installed every five meters in adherence to the existing Fire Code of the Philippines. Like almost all condominiums, Trion has smoke detectors that will ring up to 200 decibels in case smoke emanates from any portion of each floor.

Trion has four elevators for every tower with 8,500 psi for the sheer wall. The sheer wall is the portion of the structure that holds the elevator. Under normal engineering practice, according to the engineer, a sheer wall must have psi rating equivalent to those for columns or foundation.

“The sheer wall strength is very important because the elevator always moves and there is the tendency it might collapse if the concrete strength is not high or below 8,000 psi,” he explained.

Consultants for electrical, plumbing and glassworks are Amcon, Jecmi and JAA, respectively. Suppliers of cement are Holcim and Republic for type 1 cement while Hilti and Bostik provided sealants. The bulk of steel used were sourced from Pag-Asa Steel, one of the pioneers in the steel industry in the country.

3rd biggest contractor DDT Konstract, Inc., according to the

DPWH Urban Roads Projects Office, is the third most reliable contractor just behind the two leading firms, DMCI and EEI, in terms of the number of government projects bagged each year. There are more than 5,300 DPWH-accredited contractors.

Each of the five basements has an elevation of 3.5 meters and can accommodate up to 150 vehicles per level.

As far as accidents are concerned, DDT Konstract Inc. has not received reports of major accidents in the estimated 300 projects completed by the company for the past five years. According to Engr. Abella, DDTKI is one of the very few contractors in the Philippines that strictly follow stringent safety measures where no worker is allowed to proceed to the construction site unless fully equipped with protective gears that consist of helmet, masks, gloves and safety shoes.

Engr. Abella disclosed that as far as he knew, none among their past projects encountered problems in delayed schedules because they have a complete line of dependable suppliers of major materials like sand, gravel, steel, adhesives and cement. As far as labour is concerned, there were no problems either since DDT has access to a pool of skilled and non-skilled workers.

The man in charge of Trion Towers, civil engineer Gerry Abella, is someone who knows his job like the back of his hand.

The engineer has so far done/overseen/supervised hundreds of projects for DDT since joining the third biggest contractor in the Philippines five years ago.

Abella is a product of Mapua Institute of Technology, considered one of the best engineering schools in the Philippines. “Every aspect of construction design and computations is computerized. We use Autocad for design. What the project owner must do is to ensure that those who will implement the project are knowledgeable,” he said.

Asked what he thinks of engineers working abroad, Abella opined, “If an engineer is doing well in the Philippines, then there’s no need for him to go abroad because the best minds are in the Philippines, not anywhere else. If you compare the knowledge of those who worked abroad and those who practiced here, those who’ve been away will find themselves alienated because the greatest challenges are here.”

An engineer who knows his job well

Engineer Gerry Abella

“This is the 42nd project we did for Robinsons Land. We are their official contractor. Every project was no longer subjected to bidding as they already awarded them to us” --- Engineer Gerry Abella


SAlES & MARKETING MANAGEMENT

Developing an effectivemarketing planStep-by-step instructions on how to prepare an effective marketing plan that every one in your team will support

C onstruction professionals enjoy solving customer’s problems. In fact most of us find great pleasure in solving really tough problems and

find great satisfaction in solving the tougher ones. To be successful in the construction business we need to be knowledgeable problem solvers. However the more successful construction professionals become in solving other people’s problems they also create a serious problem for themselves, namely, how to be paid a fair profit for providing customers exactly what he wants and needs. To be assured of a fair profit, construction professionals need to also be effective marketers.

Sadly marketing techniques are often

not taught in engineering schools nor can one learn marketing from the job site. The “school of hard knocks” also does not teach how to find prospects that will pay a fair profit for value received. So let us examine step-by-step the development of an effective marketing plan for a construction company.

First let us define marketing as the sum total of all things that need to be be done to get prospects to use your product or service. Marketing also includes the following: 1) Prospecting for qualified prospects that require you products and services; 2) Creating the image so that prospects will call when they have a need for your products or services; 3) Establishing a system that enables you to call on prospects at the

right time; 4) Learning correct persuasion techniques that convinces prospects that your proposal is the best buy; 5) Learning to maintain satisfied customers so that they refer other companies to become your customers. Performing these functions with skill will make the construction professional an effective marketer. It will bring many satisfied customers and the road to success will be much easier.

IMPORTANCE OF THE MARKETING PlANA company without a plan is like a ship

without a rudder. It moves aimlessly in the marketplace reacting to pipe dreams instead of the real opportunities. The company’s team members are waiting for good opportunities to come to them. They get a lot of experience turning out preliminary estimates, or bidding on jobs that you will never get. But there are many bids you can win had your company a marketing plan. Then your team members would have a more specific goal to reach a plan on how to reach these goals.

STARTING yOUR MARKETING PlAN Preparing an effective marketing plan

needs for you to take time, uninterrupted time, for you to work things out. Getting away from the office is one possibility so that there will be no telephone calls or other demands for your attention. You will in fact save time and a lot of frustrations if you can avoid interruptions during this planning period.

Then get all of your key people involved in the preparation of the plan. By getting your key people to help prepare the plan will make them support the plan they helped create. Have deadlines for yourself and for everyone involved for the final draft plan. This will minimized the tendency to procrastinate. Let “objective’s” be transformed into “work.” Plans are more effective if they show what work must be done to re a c h the objective s.

Rather than wasting your time trying to predict future trends and its potential opportunities develop an effective marketing plan for your construction company for the future. Use the predictions of experts that

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are paid to make such predictions. These predictions are summarized in construction industry magazines, business publications, government reports, newsletters. Take cognizance of such predictions and include them in your plans. Assign someone the responsibility of keeping informed of future economic trends and predictions of the economic future. Thus there will be less likelihood of ‘pipe dream plans’ nor the chances of missing real opportunities.

Since the future is by its very nature very uncertain, make a plan for what you expect will happen. But then also prepare an alternative plan should more opportunities be made available. Then also have a third plan prepared should the future be less rosy and there are less opportunities. The time and energy given to these ‘what-if’ scenarios will provide you a good map to be able to guide your company on course regardless of what the future brings.

dEvElOPING THE MARKETING PlANTo start your marketing plan, here are a

few logical step to follow:

1. First determine the strengths and assets of your company as well as the goals that you wish to accomplish.2. Find out the needs of your potential customers3. Estimate the total amount or size of your potential market in the area or territory of your operations4. Determine or estimate the strengths and weaknesses of your competitors5. Establish an action plan within your resources 6. Set up a system of monitoring results.

Each of the above steps are to be addressed in greater detail below.

Step 1: Determine the strengths and assets of your company

During this first step you and your key team members should determine the following questions:

Clearly establish what kind of business are

you engaged in today?Forecast the type of business you could be

engaged in 5 years from today?What your company’s strengths and its

weaknesses?How do you prefer to operate your

business?Find out what you wish to achieve this

year? The next 5 years? What assets do you posses with which to

achieve your goals?What is your past year performance?What type of business are you looking

for?How far do you wish to travel to acquire

the business?To accomplish this step is to provide each

key team member the list of questions in advance and ask him or her to think seriously about each one. Then at an appropriate time, after allowing each member enough time, in a relaxed meeting preferably away from the office, discuss each question. Then combine individual answers to create a consensus.

Step 2: Determining the needs of potential customers

You and your team need to discuss and agree to the answers to these important questions :

Who are your customers and what do they specifically require?

Who are the people in your market area whose needs are not being met?

Who among the above could be your customers?

Step 3: Determine the total potential market in your territory.

This requires a bit of market research. You want to estimate how much business there would be if you were able to acquire all the jobs in your potential market. You can perform the research yourself or hire a research firm to do the job for you. Sources of information could be commercial banks, utility companies, major construction material suppliers, etc. Other sources could include economic studies from local and national governments, government offices issuing building permits, universities like

U.P. undertaking economic research, trade, business or economic publications, industry associations, etc.

Step 4: Study the competition, their strengths and weaknesses.

Learning more about the competition, particularly their strengths and weaknesses needs some detective work. You need to initially know who they are then analyze their strengths and weaknesses so as to establish the keys to determining the areas of your own opportunities. There are three simple steps that will provide you information. First, talk to your customers; Second, examine your competitors performance; Third and last, keep up-to-date files on each competitor

Step 5: Prepare an action plan within the means of your resources.

Once you have the data and drawn your conclusion, then have each key employee develop a list of objectives that need to be achieved in order to accomplish the company’s goals. Assign your key people who must carry out the objectives specific responsibilities and deadlines. Study in detail the cost of carrying out each phase of the plan to make sure it is within your budget. Having an affordable marketing plan will enable your company focus on a common goal and make things happens.

Step 6: Setting up a system of monitoringTo be successful a businessman needs to be able to control his company. To do that requires four basic steps: 1. Have a plan; 2. Measure results; 3. Check results with plan and; 4. Execute corrective action when needed.

A great plan filed away in a drawer and forgotten is a waste of time and effort. When marketing plan is completed right away set up a routine system to be able to monitor progress and inform all stake holders. The marketing plan is then a road map that guides the company towards the goal that you have established. But it is effective only if you use it.

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SUPPlIER'S PROFIlE

Edwards Marcs enters power savingmarket with new technologyCEO Ricky Cordova hopes to convert a million users to energy saving air conditioning units in order to cut Philippine carbon footprint

By Ed Velasco

It is not well known that 60% of their household electricity consumption is due to their air-conditioning units. If anyone wants to check this all he or she needs to do

is get the electric bill and compare it while the air con is not used for a month.

This power-guzzling scenario prodded Ricky Cordova, president and chief executive officer of Edward Marcs, to shift to air con distribution with thermal technology business from their mainline business of maintaining diesel-powered power plants. Since venturing into supplying aircon units, called Sedna Aire, that use 60% less power than conventional brands, six years ago, Edward Marcs has been attracting an average of a new customer a day (30 customers per month) mainly from major firms around the country.

This number of units supplied each month to their new customers is just about the limit of what the company can deliver and maintain at the moment. The 30-client per month target has been consistent for two years now. Despite their relative modest success of six years in making a name in the business that promotes energy efficiency, it has not been a walk in the park for the Cebu-raised Cordova.

“The biggest challenge we have faced were the cynics who didn’t believe that our product can help them save as much as 60% of power

use,” the president-CEO told Philippine Construction and Design in an exclusive interview.

Cynics prevalent Cordova did not face such cynics when he

began at Edward Marcs in 1997. At that time the company was still involved in supplying parts and maintaining diesel power plants of the now defunct National Power Corp.

It was also in that year that Edward Marcs started supplying water heaters, vacuum tube collectors and solar panels to households, factories and offices.

For 10 years, his company was engaged in this business until they realized in 2007 that a real need for a tropical nation like the Philippines is what they had to supply. On that year, 2007, Cordova introduced to the Philippines an air con brand, with new technology, that uses less power.

Naturally the introduction of new technology brought forward many who refused to believe that such a technology existed and it was available in the Philippines. The cynical challenge of unbelievers fired Cordova to even work harder to promote the brand and its power saving technology. Hard work and his personal enthusiasm convinced a few big companies to try the new product and its promise of saving

60% of their air conditioning costs, which for big firms easily translates into major savings. Major firms like the Makati Medical Center in Makati, Climate Change Commission in Malacanang, Mind Museum Nestle, Unilever, Ilioilo City Hall and many more made the switch and replaced their power guzzling air conditioners with the Sedna Aire brand. For years now Edward Marcs has been maintaining air con units of various sizes for these large and prestigious firms but Cordova feels they are just scratching the surfacing of a potential market of millions of units. However Cordova remains modest, “If we hit 100 clients a month I’ll be more than happy because I can say that our hard work has paid off,” he said.

Households are biggest usersCordova, who is also member of the

business council of the UN Economic and Social Commission for Asia and the Pacific (Escap), said a study of the Department of Energy (DoE) revealed that there are more than three million household air con units in the entire Philippines. It is the smaller, but more numerous units, that consume the most power, not the larger air cons in factories or offices.

The DoE announced that investors are needed to solve the brownouts in Mindanao

Ricky Cordova, president and chief executive officer of Edward Marcs


“The biggest challenge we have faced were the cynics who didn’t believe that our product can help them save as much as 60% of power use”---Ricky Cordova

but they are shy and very hard to find. The DoE added that a one-megawatt (MW) power plant needs at least US $2 million investments. At least 17 Mindanao provinces need 300-MW to solve the brownouts there, which means US $600 investment, is needed.

“It’s a misnomer that air con units of businesses use more power,” Cordova said. His ultimate target is to convince at least 30% of these three million units’ household owners to replace to new technology in a decade.

“If we meet this target, we don’t need to

build more power plants. We are now feeling the brunt of our heavy power use if we think of the six-hour rotational brownouts in Mindanao,” he explained.

So far, there are four sizes of Sedna Aire—1 horsepower (hp) two-ton, three-ton and four-ton. Among the four, the 1-HP is perfect for any home while the three other sizes are suitable for offices, schools, factories, hotels, malls and even auditoriums.

Comes in 4 sizesWhen it comes to price, Cordova admitted

there is difference between conventional air con units that are widely available in the market than Sedna Aire.

A 1-HP brand of his air con costs P63,000 (with remote control, timer and lock) while most commercial brands without energy-efficient technology costs only between P16,000-P24,000 with similar added gadgets. A 2-hp costs P90,000; P150,000 for 3-hp while a 4-hp costs P220,000.

“The technology that enables users to save from power use is the key why there is

a difference in price per unit,” he said. He admitted that the thermal technology found inside Sedna Aire air con units is not cheap.

The thermal technology works when the Freon is compressed into high temperature and high pressure steam. When this principle is achieved, the Freon releases the heat when passing the air con evaporator and turns into high pressure normal temperature liquid.

Because the market is expected to rise in years to come, Cordova still cannot exactly forecast how much market share his firm will achieve. According to Cordova, their current miniscule market share is not a deterrent but rather serves as inspiration for the firm to expand its market base.

“Maybe the people should realize how big the hole at the ozone layer today is. This is due to use of fossil fuels and emission of substance from conventional air con units that don’t have energy-efficient technology,” he said.

Ozone layer hole now is almost 1M sq. m. According to a 2006 documentary of

former US vice president Albert Gore, An Inconvenient Truth, the hole at the ozone layer is now almost 950,000 square kilometers. This size is about one-and-half the size of the state of Texas.

The growing hwole in the ozone layer and the need to educate the people to use less power with improved technology in order to cut our carbon footprint are the challenges that inspire Cordova. He dreams of replacing at least 30% of three million household air con units with units that use less power with improved technology in at least a decade.

Currently Edward Marcs have a staff of 24 personnel and 50 subcontractors that help the president-CEO in his dream of reaching their target. Before hitting the 30% of the three million target, the president-CEO has a more

realistic plan of getting 100 clients per month before the third quarter of 2013.

It is fortunate for Cordova that the top brass of the company is fully supportive of his ambitious plans. It is lucky for Cordova that the chairman of Edward Marcs, Andres Cruz, shares his dream and is also his father-in-law. “Even though our market share is still very small I believe that we’re number 1 in solar air con,” he said.

Just like what Barack Obama said during his inaugural speech last January 20, 2013 “I have never been more hopeful to lift this country to greatness” is the same mantra Cordova is following every time he faces a client except that reduction of power usage is in his mind, not politics.

“There is no other home aside from this planet so the people must realize that Mother Nature needs help. Let’s reduce too much use of fossil fuels and convert to technology that uses less power,” according to Cordova.

For the president-CEO there is no turning back. He believes as a personal motto, “Not go to a place where there is a trail to lead you, but go instead to a place where no one has gone before and leave a trail.”

“I always consider everything a challenge and the greatest challenge for me now is to do what I can do to help the environment.”


CONTRACT MANAGEMENT

‘Force Majeure’ and problems in its wakeMitigating costs and problems that follow a disaster

In a country like the Philippines with its recurring typhoons, earthquakes, floods, and other calamities it is only logical to consider the possibility for

‘force majeure’ events, though it may not occur, in the construction of projects and it’s after effects. Generally damages or delays caused by ‘force majeure or an Act of God is not considered to be compensable. ‘Force Majeure’ is an Act of God beyond the control of parties involved in the project. Such events include severe weather conditions, labor strikes, natural disasters like earthquakes and floods, governmental actions or changes in law, etc., that affects work negatively.

Normal contract clauses concerning

Acts of God or ‘force majeure’ will include language that defines the force majeure event. Such language includes notice requirements and the terms of the schedule of extension. Severe weather or a labor strike occurrences have clear start and end dates. However when there is a major event that not only

directly impacts the work but also creates potentially changed working conditions after work resumes, it gets more complicated. Many questions arise concerning allowable project extensions, responsibility for mitigating the event’s impacts, as well as the costs associated with mitigation efforts.

Continuing ImpactsUsually when a force majeure event is

declared, the work forces project secures the site, and leaves the project site until the ‘force majeure’ event has passed or considered ended. However, in events like the eruption of Mt. Pinatubo or the hurricane Katrina that destroyed large areas along the American Gulf Coast, destroying houses and buildings and demolishing infrastructure and utilities such as roads, power lines, gas lines, running water, etc. The extent of destruction was unforeseen particularly in its continuing impact on the work of the project. Although, by strict definition of most ‘force majeure’ clauses, the event had ended, the impacts

The volcanic eruptions and hurricane aftermath reduced labor availability and also resulted in no available housing for the labor, limited utilities, higher paying jobs for cleanup/repair, and transportation and communication issues.


continued delaying and disrupting projects in the areas affected.

The volcanic eruptions and hurricane aftermath reduced labor availability and also resulted in no available housing for the labor, limited utilities, higher paying jobs for cleanup/repair, and transportation and communication issues. Projects in the area suffered and could continue to suffer productivity impacts and schedule delays. Questions that arise include: Are the continuing impacts of such events classified as ‘force majeure’? Is the contractor allowed to additional schedule extensions as a result of these impacts? These are questions with no clear-cut answers nor are these questions likely to be addressed in the contract. However if these issues were addressed earlier, particularly in the ‘force majeure’ clauses of the contract, it would have mitigated the negative impact of the event. ‘Force majeure’ language should be clear on what constitutes a ‘force majeure’ event as well as what is considered the end of the event.

Contracts dealing with events that can be classified as ‘force majeure’ should consider the type of event when it ends. A disastrous ‘force majeure’ event may continue to affect the contractor’s ability to perform the work

as originally planned. This issue should be considered separately from the actual force majeure event.

The end of the ‘force majeure’ event is at the time work is allowed to continue even at a limited capacity. Schedule extension, without compensable damages, should be allowed, unless the contract language indicates otherwise. Major ‘force majeure’ events such as typhoons, floods or earthquakes, affecting large areas should have additional contractual language to address the continuing impacts to the work progress. Such issues as: 1) Reduced labor availability and productivity; 2) Impacts to utilities necessary to perform the work; 3) Lack of basic utilities and housing for labor; 4) Site availability; and 5) Impacts to material and equipment suppliers should be addressed separately in the ‘force majeure’ provisions of the contract.

Since the basic premise underlying ‘force majeure’ provisions is that no one of the parties should be liable for damages exclusively resulting from the event, it will be in the parties’ best interest to agree conditions where both bear some responsibility for costs associated with extraordinary ‘force majeure’ events. They could assume responsibility for the following: 1) Making a

fair determination of schedule extensions or liquidated damages; 2) Making allowances for productivity impacts; 3) Providing living and transportation facilities; 4) Increasing labor rates; 5) Providing basic utilities; and 6) Improving site access

The contractual language can much more clearly define ‘force majeure’ events as the risks that parties are willing to accept. This prior understanding can provide the means to amicable resolutions. Such prior agreements will lessen the potential for conflict. The question of what makes up reasonable mitigation efforts during the force majeure event however still needs to be answered.

Assigning responsibilityMany ‘force majeure’ provisions include

language concerning mitigation that are vague and subject to misunderstanding (i.e., “…the Contractor shall use all reasonable effort to mitigate the impact of the force majeure event on the project.”). What makes up “reasonable effort to mitigate”. Who is responsible for the costs associated with mitigating those impacts? If there are continuing impacts,? Such efforts could be simply involve securing the site or it may involve more complex efforts such as building temporary housing, providing utilities and basic necessities, increasing

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Mount Pinatubo eruption, June 1991

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CONTRACT MANAGEMENT

wage rates and per diems, and accelerating the work. All such solutions cost money, and ‘force majeure’ provisions are there to protect the parties from financial damage as results from the force majeure event.

Where does the contractor’s responsibility to perform the work under the terms of the agreement supersede the ‘force majeure’ provisions? What amounts of money is the contractor is expected to expend to mitigate the event’s impacts and up to how much does it remain “reasonable”?

In traditional ‘force majeure’ clauses, the contractor is expected not to expend excessive amounts of money as a result of a major disaster that is considered ‘force majeure’. The contractor is normally entitled to non-compensable schedule extensions. Such extension will cost the contractor project extension costs. Moreover the owner also has the right to expect that the contractor meet the terms of the contract. If the contractor fails the owner may suffer losses in lost income from late product production (i.e., delayed product availability, office space property rentals, etc.). Hence the contractor should reasonably expect schedule extensions as well as the suspension of liquidated damages as a result of the project’s delay. On the other hand, the owner should expect that the contractor to complete the work and to make all reasonable efforts to mitigate impacts to future revenue expected from the project.

Some of these issues can be avoided by implementing additional contract language concerning continuing impacts. But this still does not address responsibility for mitigating damages with “reasonable” effort. What is “reasonable” to the contractor may not be “reasonable” to the owner. Both parties are expecting a profitable project. The costs involved in demobilizing and remobilizing resources, securing the facility, and storing equipment is absorbed by the contractor. The owner also incurs additional costs associated with late completion of the project. Therefore, each party has a different definition of “reasonable” mitigation efforts.

Obviously the best way for parties to

protect their interests is to clarify contract language regarding reasonable mitigation efforts. The parties should adequately identify potential risks associated with performing the work. It will be very difficult or nearly impossible to accurately assess potential risks associated with performing a project if the contract language is vague, too general or unclear. Failure in clarity of language due to underestimating the potential risks may lead to disputes.

When determining ‘force majeure’ mitigation parties should consider the following questions: 1) What is a clear definition of “reasonable?”; 2) What are considered reasonable mitigation costs for force majeure events?; 3) What mitigation efforts might be necessary (i.e., securing the facilities, employee living costs, hourly rate increases, temporary housing, etc.), and when should they be employed?; 4) Which party or parties are responsible for these costs, and are they shared?; 5) Are potential mitigation efforts included in other contract provisions?; 6) How long should one party incur these costs?; and; 7) What impact do these mitigation efforts have on potential schedule extensions?

Questions that clarify the responsibilities more clearly should be considered by the parties when writing a ‘force majeure’

contract clause. Parties involved should ask themselves if requests are fair and reasonable regarding the contract language. Unfair, unjust or one-sided contractual language does not engender successful projects. If contracts are considered one sided, it will often lead to the parties feeling they are unfairly treated. Unfair contract language may lead aggrieved parties to recover costs in other ways. Also remember that if contracts are in unclear, vague or ambiguous language it is usually construed against the party that drafted the contract.

ConclusionThough construction projects anticipate

‘force majeure’ events the potential impact of these events cannot be foreseen. When it happens unclear contractual language is often associated with force majeure events. Recent major ‘force majeure’ events have increased an awareness regarding the importance of clear contractual language defining these events. This includes specific contractual language that define the end of force majeure events and the mitigation responsibilities required from each party. To clarify ambiguity will reduce risks of potential conflicts.

Source: Based on an article by Interface Consulting International, Inc.

Residents cross a river in the flash flood-hit village of Andap, a day after Typhoon Bopha made landfall, in New Bataan township, Compostela Valley in southern Philippines Wednesday Dec. 5, 2012. AP / Bullit Marquez

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In traditional ‘force majeure’ clauses, the contractor is expected not to expend excessive amounts of money as a result of a major disaster that is considered ‘force majeure’.



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The upperstructure on the 470TM truck-mounted telescopic boom excavator features a 215-hp Cummins QSB 6.7 Tier 3 engine that powers the carrier via a hydraulic motor attached to the carrier's six-speed transmission. Programmable joystick controls in the upperstructure allow the operator to control carrier speed, direction and braking. The fixed, two-section telescoping boom or optional Adjust-A-Boom extend hydraulically up to 3 ft. for a 23-ft. 6-in. maximum digging depth. Boom-tip hydraulic swivel enables 180° of bucket tilt. The unit is available in 4x2 or 4x4

10,000 watts. It features a narrow-shaped design, newly developed alternator, enhanced fuel efficiency and low noise levels. A patented frame design incorporates a clear distinction between hot and cool operating parts, along with a one-touch, removable plastic top cover allowing for easy battery access and maintenance. The i-Monitor digital operation system displays total used hours, generating voltage, battery condition, Oil Alert and AVR (auto voltage regulator) error code.

The Eco-Friendly Paint!


DTC Read and Erase - Live Sensor Data - Flight Recording - Advanced Function, Programming, and Coding

Touch-screen, hand-held scan tool that allows for fast and simple access to advanced diagnostic functions. It also provides OEM level diagnostics for all Asian manufactures as well as excellent coverage for European and American manufactures. This kit includes the G-Scan scan tool and all necessary cables, connections and adapters.

The best multibrand diagnostic tool for Asian cars, OEM coverage on Asian vehicles, very competitive on Europeans and domestic cars.

The Al Gore environmental trend has created a slew of products that each claim to be more “green” and “eco-friendly” than other brands. But Dunn-Edwards actually has the test and product R&D to back its claims.

Formulated to superior performance – they have the right paint for every specialized need. Washable paint fanatics have their SUPREMA Interior Flat Paint. Households with children will be very happy with SUPREMA Interior Velvet Paint which can withstand the scrubbing necessary to remove finger stains and crayon marks.

Color is one of the most important considerations in choosing a paint product. With Dunn-Edward’ meticulous attention to detail and paint formulation in Perfect Palette – clients are assured of consistent color for every can.

Titanium dioxide is the highest-grade pigment available and this is what Dunn-Edwards utilize in their paints. They have also halted the use of ethylene glycol (EG) in their water-based paints. EG is a hazardous air pollutant.

For more information contact DECOPRIO at 3326776 or log on to www.decopro.com.ph/dunnedwards.com

Deco Pro and Dunn-Edwards present their eco-friendly finishing materials

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F1000T and F1000W paversThe F1000T (tracked) and F1000W (wheeled) 10-ft.-wide

asphalt pavers feature a high-performance outboard auger drive and high-capacity slat conveyor system designed to eliminate center-line segregation. High-capacity 3/4-in. formed hopper wings deliver asphalt to the slat conveyor with a wide material tunnel and extra-heavy chains and slats. The conveyor system supplies 600 tph of asphalt to a Carlson EZ III or EZ IV screed to lay mats up to 12 in. deep on new placements, and thin overlays on rehabilitation projects. Dual swing-out operator stations and a lower deck height provide a clear view of the hopper and auger and a full view of the work area. Dynapac USA -- Atlas Copco Construction Equipment

Model Rd6536 Skid-Steer Concrete Pump2,700-lb. attachment features a 3-in. hydraulic squeeze pump that delivers up to 25 cu. yds. per hourThe 2,700-lb. Model RD6536 skid-steer

pump attachment features a universal design compatible with any skid steer. The 3-in. hydraulic squeeze pump is suited for ICF, block fill, form and pour, driveways, basements and various shotcrete applications. It is able to pump 3/8-in. aggregate shotcrete and 3/4-in. aggregate concrete mixes. A hydraulic agitator is included in the receiving hopper to keep the mix well blended. The unit offers variable speed from 0 to 25 cu. yds. per hour. Vertical pumping distance reaches 50 ft. with the use of a rubber delivery line, while horizontal distance can reach up to 250 ft. Blastcrete Equipment

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Top-locking TeethDesigned to be installed easily without tools and removed with either a pry bar or punch

The Top-Lok top-locking teeth are available for Case, Deere, JCB and other backhoes and are designed to fit existing shanks so there are no flexpin hassles. They can be installed easily without tools, and removed with either a pry bar or punch. The teeth are available in self-sharpening single and twin penetrator, dirt, fang and flare styles. Starter kits contain five teeth and all attachment components. H & L Tooth Co.

dd 110-W Hand Held Coring SystemThe 12.8-lb. DD 110-W hand-held coring system is suited for appli-cations from through holes to anchor holes, and on any jobsite with limited access. The compact, well-balanced tool has a bit capacity of up to 6 1/4 in. maximum and a minimum bit size of 5/16 in. HWC Core Bits are available for hand-held coring in reinforced concrete, while HDMU universal core bits with laser-welded segments enable drilling in masonry of all kinds. Virtually dust free is possible when fitted with the optional dust or water removal systems. Hilti Inc.

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www.forconstructionpros.com


ASTM A312/A999, Length: 20 ft, Material Type: 304/316LWall Thickness: S5,S10,S20,S30,S40,S80,S120,S160*Other material grade and size available by special order. Manufacturer: Sanyoseiki Stainless Steel CorporationTel. No.: (632) 2425501-08 Fax. No.: (632) 2477877www.sanyoseiki.com.ph

S/S: Pipes (Seamless, Welded)

Rite Hite, Revolution Fan, HvlS (High volume low speed)Move the most air over the largest area at the lowest cost

Benefits. Improve worker productivity, Year round comfort for employees & factory workers, Energy savings, Cools down warehouses to protect product during storage

Please visit our Website: http://www.ritehitefans.com, Exclusively sold by Basic Machinery & Acoustics Corporation at Suite 103, TWG, Makati Cinema Square, TWG, Chino Roces Ave. Tel. 811 1572 – 73, Fax. 811 1652 Email: [email protected]


Let the experts solve your commonrail diesel engine problems…

central diesel

central diesel

√ We scan, troubleshoot, calibrate, rebuild and exchange Commonrail Diesel Fuel Systems of Hyundai, Kia, Toyota, Mitsubishi, Ford, Mercedez Benz, BMW, Isuzu, Nissan, Ssangyong, etc. ● CRDi of Hyundai & Kia, D4D of Toyota, DiD of Mitsubishi, etc.

√ We do it faster with our rebuilt/exchange program, if available. ● Savings of up to 50% from brand new assemblies. ● Same 1-year warranty as brand new.√ We repair turbochargers, with state-of-the-art balancing equipment.

√ We service commonrail systems and electronic unit pump/injector systems used in modern trucks, generator sets, construction and marine applications.√ We service the traditional inline and rotary injection pumps.

“Save yourself the money and trouble…we’re equipped for you.”

For further inquiries, come see us or call

1176 Quezon Avenue, corner Scout Magbanua St., Quezon City, Metro Manila, Philippines 1103 Tel: (+632) 4113711 to 13 * Fax: (+632) 3742522E-mail: [email protected] * www.centraldiesel.com.ph

Hitachi Zaxis 470, 670, 870 dash-5 ExcavatorsMore engine power and optimized hy-draulics boost breakout forces

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A more powerful Isuzu engine and optimized hydraulics improve arm and bucket digging forces on the ZX470LC-5, ZX670LC-5 and ZX870LC-5 over the ZX450LC-3, ZX650LC-3 and ZX850LC-3 models they replace. The Isuzu cooled EGR engine platform meets Tier 4 Interim emissions standards with a new exhaust filter consisting of a diesel oxidation catalyst/diesel particulate filter. A roomier cab features a heated, more comfortable air-suspension high-back seat with more than 10 in. of travel to slide with or independent of the joystick console. Three power modes, power boost and three years of ZXLink telematics carry over from the previous models. Hitachi Construction Machinery

660GC Concrete Chain Saw

The 660GC combines ICS Diamond Chain Technology with a lighter weight 64cc, 4.2-hp, two-stroke, air-cooled gas engine. Designed as an entry level saw for general construction or a light option saw for the heavy user, the 18-lb. unit offers up to 10-in. deep, narrow cutting and square corners in concrete, stone and masonry. A roller-bearing sprocket nose provides smoother cutting and longer guidebar life. The integrated water delivery system eliminates dust and improves chain life. An advanced rear-ported air intake keeps airflow slurry free, while a polyester air filter is designed specifically for wet cutting. ICS, Blount Inc.



SEDNA AIRE uses the Solar Absorption System to achieve a significant reduction in energy consumption. With the use of Solar Absorption System, Sedna Aire is designed to carry full air-conditioning load especially during sunny periods. It utilizes Solar Vacuum Tube Collectors in absorbing heat energy from the sun which is in turn used to displace electricity used in the cooling process. Although it still requires electricity to pump the refrigerant, the amount of power used is minimal compared to that consumed by a compressor in a conventional electric air-conditioner. Sedna Aire, being a low electricity consuming air-conditioning unit, significantly reduces the harmful carbon (CO2) emission, a major cause of global climate change. It also uses the most ozone friendly refrigerant of today, R410, the refrigerant that will replace the most commonly used R22 of conventional aircon units by the year 2010. Our product is CE, UL, CSA, NATL/C certified and duly exempted by DOE to PNS 395-1:1995, obtaining the highest EER of 26. Savings, as spelled by this product, helps us realize a return on investment in 3 years or less, a benefit no other brands can provide.



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The Bid-Well 4800 automatic roller paver finishes a variety of light-duty flatwork applications with ease and efficiency. The paver makes quick work of projects using “wet” concrete of 2.5 in. slump or higher, including port decks, urban development roads, sewage tank bottoms, warehouse floors, and parking lots. The 48-in.-deep truss frame offers standard machine lengths from 36 to 120 ft. for paving variable widths from 12 to 116 ft. Terex.www.terex.com

Terex Bid-Wel Automatic roller paver

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The New PJRC160 allows the

Cut Rebar Cordlessly

user to cut up to #5 rebar cordlessly. The portability of the tool allows for a dynamic and changing worksite. The MAX PJRC160 Cordless Rebar Cutting Tool is powered by a 25.2v lithium ion battery, the same battery as the MAX Cordless Rotary Hammer PJR265 and same battery charger as the MAX RB217, RB397 and RB517 Rebar Tying Tools. The MAX PJRC160 Cordless Rebar Cutting Tool makes 176 #5 Grade 70 cuts per charge, has a 360 degree rotating head to easily align with the cutting area, weighs only 16.8lbs., takes only 3.3 seconds to make a cut and features a brushless motor. The PJRC160 also features reversible cutting blades that offer 5,000 cuts per side for a total of 10,000 cuts. www.maxusacorp.com

Turn Regular Pickups into Dump Trucks

Buyers Products offers DumperDogg dump inserts for use with pickup trucks. The inserts are available in 12-gauge steel and 304 stainless steel, for both 6- and 8-foot truck beds, as well as in polymer for 8-foot truck beds. The steel and stainless steel DumperDogg inserts have a 2-cubic-yard capacity in the 8-foot truck insert and a 1.5-cubic-yard capacity in the 6-foot insert. The polymer insert has a 1.6-cubic-yard capacity. DumperDogg inserts feature a structural steel frame with a black powder coat finish for corrosion resistance. Sturdy 3/4-inch tailgate hinge pins provide support for the inserts’ payload capacity of 6,000 pounds. The 1.5-kilowatt motor for the hydraulic pump can be operated from inside the truck cab using the tethered control box for power-up and power-down. Dump angles on the inserts range from 0- to 40-degrees. www.buyersproducts.com

Master Bond Polymer Adhesive EP21ANHT

Master Bond Polymer Adhesive EP21ANHT is a two component room temperature curing adhesive, sealant and coating that has an exceptionally high thermal conductivity of over 22 BTU•in/ft2 •hr•°F. EP21ANHT is recommendedm or high temperature applications where

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service temperatures may reach 400°F. It has an exceptionally forgiving 1:1 mix ratio by weight or volume. Although room temperature curable, accelerated cures are possible by adding heat.

As a thermally conductive adhesive it will adhere to a wide variety of substrates and can offer a tensile shear strength over 1800 psi. Other noteworthy features included superior electrical insulation properties and enhanced dimensional stability. EP21ANHT offers superior resistance to a wide range of chemicals including water, oil, fuels, and some solvents over the temperature range of -60° to +400°F. Master Bond Inc www.masterbond.com www.masterbond.com

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Concrete Mixer (JS500)Product Description Concrete mixer JS Series are double-

shaft forced mixers. They can be used as singe independent mixing units or can be combined with PL Feeders to form a concrete mixing station. They can be used for different mixing products like concrete pre-casts for constructions such as road, bridge, water supplying, and civil engineering. The mixers can produce with high efficiency dry and hard concrete, plastic concrete, light weight concrete, and mortars. Specifications: Productivity: 25 m3/h , Motor Model: Y180M-4, Motor Power: 18.5 Kw, Hoister Motor Model: YEZ132S-4-B5, Hoister Motor Power: 5.5 Kw , Water Model: 50DWB20 Good mixing quality. Water Pump Power: 0.75 Kw, Lifting Speed of Hopper: 18 m/minm Shandong Minglong Construction Machinery Co., Ltd. http://minglongtc.en.made-in-china.com

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PRICE MOvEMENT

O n a monthly basis, wholesale prices of selected construction materials in NCR grew by 0.2 percent in April from -0.1 percent in March. From zero growth, the G.I. sheet index went up by 1.2 percent;

lumber index, 1.0 percent; structural steel index, 0.9 percent; sand and gravel index, 0.7 percent; hardware index, 0.6 percent; electrical works index, 0.5 percent; reinforcing steel and PVC pipes index, 0.4 percent; concrete products and plywood index, 0.3 percent; painting works index, 0.2 percent; and glass and glass products index, 0.1 percent. Moreover, upward adjustments were recorded in the indices of cement (1.3% from 1.0%); doors, jambs and steel casement (1.0% from 0.2%); and tileworks (0.6% from 0.4%). However, the fuels and lubricants index continued to post a negative rate of 1.3 percent from -0.9 percent, while plumbing fixtures and accessories/waterworks index had a slower monthly movement. The indices of asphalt and machinery and equipment rental still recorded a zero growth.

Higher prices of gravel, sand, concrete products, cement, selected hardware products, plywood, lumber, G.I. sheets, angle and steel bars, tiles, glass and glass products, doors, jambs and steel casement, electrical works, some plumbing fixtures and accessories, selected paints, PVC doors and PVC pipes were observed during the month. However, downward adjustments were noted in the prices of gasoline, diesel and kerosene.

Month-on-month Price Movement

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PRICE MOvEMENT

APR MAR FEB JAN AVE DEC NOV OCT SEP AUG JUL JUN MAY APR

ALL ITEMS 177.7 177.1 176.6 177.2 173.1 176.0 175.8 175.4 174.9 175.2 175.2 174.3 171.0 171.1

A. CARPENTRY MATERIALS 149.0 149.2 148.9 149.3 148.7 149.1 149.1 148.9 148.8 148.7 148.6 148.8 148.7 149.0

B. ELECTRICAL MATERIALS 205.4 204.4 204.2 204.9 197.9 203.4 202.8 202.3 202.8 202.9 202.9 202.7 192.5 192.5

C. MASONRY MATERIALS 178.8 177.4 178.8 178.6 163.6 172.1 174.1 172.4 170.8 172.3 171.7 160.9 154.3 154.2

D. PAINTING MATERIALS & RELATED COMPOUNDS 180.0 178.9 179.2 180.7 178.1 180.3 180.3 179.8 179.0 177.7 177.7 177.8 177.7 177.8

E. PLUMBING MATERIALS 165.0 165.1 164.7 164.8 162.7 165.4 163.0 162.7 162.5 162.5 162.9 162.9 162.9 162.5

F. TINSMITHRY MATERIALS 140.6 139.6 134.8 134.8 133.0 134.4 133.5 133.3 132.5 132.7 132.5 132.6 132.2 132.6

G. MISCELLANEOUS CONSTRUCTION MATERIALS 298.7 298.9 299.9 301.5 302.3 301.1 300.4 301.9 296.8 303.0 304.5 304.5 307.2 308.9

Sources of Basic Data: NSO and other reporting establishmentsProcessed by NSO

2012

NATIONAL STATISTICS OFFICEINDUSTRY AND TRADE STATISTICS DEPARTMENT

Manila

Table 1 Construction Materials Retail Price Index in the National Capital Region (2000=100)

2013COMMODITY GROUP

Republic of the Philippines

C O M M O D I T Y G R O U PAPR MAR FEB JAN AVE DEC NOV OCT SEP AUG JULY JUNE MAY APR

ALL ITEMS 220.3 219.8 220.0 219.3 217.6 218.8 218.5 218.9 219.1 218.0 216.6 216.5 218.3 218.9

1 SAND AND GRAVEL 202.3 200.9 200.9 200.9 197.5 200.4 199.9 199.1 199.0 199.0 198.6 198.6 198.6 198.2

2 CONCRETE PRODUCTS 202.2 201.5 201.5 201.6 199.5 201.2 200.8 200.8 200.6 200.4 200.3 200.0 200.0 199.8

3 CEMENT 190.0 187.6 185.8 184.3 179.7 183.5 183.3 182.8 182.6 182.2 179.5 179.3 178.1 178.1

4 HARDWARE 213.7 212.5 212.4 212.3 210.7 212.6 212.3 212.2 211.6 211.6 211.6 211.2 211.2 211.2

5 PLYWOOD 180.3 179.8 179.8 179.8 178.1 179.7 179.7 179.5 178.6 178.3 178.2 178.1 178.1 177.7

6 LUMBER 229.9 227.6 227.6 227.5 223.8 227.5 227.3 226.4 225.7 225.6 225.6 225.1 225.1 222.3

7 G.I. SHEET 180.6 178.5 178.5 178.5 176.8 178.3 177.9 177.3 176.9 176.9 176.9 176.9 176.9 176.9

8 REINFORCING STEEL 251.0 250.0 250.0 250.0 245.6 249.7 249.5 248.1 248.0 247.4 246.7 245.7 244.6 243.5

9 STRUCTURAL STEEL 281.7 279.2 279.1 279.1 276.0 278.4 278.3 278.0 278.0 278.0 278.0 278.0 278.0 275.6

10 TILEWORKS 179.1 178.1 177.4 176.3 172.8 175.8 174.8 174.0 173.3 172.6 172.6 171.9 171.9 171.9

11 GLASS AND GLASS PRODUCTS 179.4 179.3 179.3 179.2 178.5 179.2 179.2 179.2 179.2 178.9 178.7 178.4 178.2 177.9

12 DOORS, JAMBS, AND STEEL CASEMENT 200.7 198.7 198.3 198.3 197.2 198.5 198.0 197.6 197.6 197.6 197.6 197.6 197.8 197.8

13 ELECTRICAL WORKS 197.1 196.2 196.2 196.2 193.2 195.8 195.0 194.4 194.3 194.4 194.4 194.4 193.9 193.0

14 PLUMBING FIXTURES & ACCESSORIES / WATERWORKS 159.3 159.0 157.8 157.8 155.6 156.3 156.1 155.7 155.6 155.8 155.8 155.8 155.6 155.6

15 PAINTING WORKS 203.7 203.3 203.2 203.0 202.0 203.1 203.0 203.0 202.8 202.8 202.8 202.8 201.6 201.6

16 PVC PIPES 173.5 172.8 172.8 172.8 172.3 173.1 173.1 173.1 173.1 173.1 172.8 172.4 172.4 172.4

17 FUELS AND LUBRICANTS 329.4 333.8 337.0 329.8 336.3 328.2 329.8 337.8 341.2 331.1 318.2 319.7 341.7 353.0

18 ASPHALT 464.0 464.0 464.0 464.0 448.1 464.0 446.7 446.7 446.7 446.7 446.7 446.7 446.7 446.7

19 MACHINERY AND EQUIPMENT RENTAL

114.6 114.6 114.6 114.6 114.6 114.6 114.6 114.6 114.6 114.6 114.6 114.6 114.6 114.6

Republic of the PhilippinesNATIONAL STATISTICS OFFICE

INDUSTRY AND TRADE STATISTICS DEPARTMENTManila

CONSTRUCTION MATERIALS WHOLESALE PRICE INDEX (CMWPI) IN THE NATIONAL CAPITAL REGION (NCR)

2013 2012

(2000 = 100)

Line No.

CONSTRUCTION MATERIALS WHOLESALE PRICE INDEX (CMWPI) IN THE NATIONAL CAPITAL REGION (NCR)(2000 = 100)

TABLE 1 CONSTRUCTION MATERIALS RETAIL PRICE INDEX IN THE NATIONAL CAPITAL REGION(2000 = 100)

Sources of Basic Data: NSO and other reporting establishments Processed by NSO

www.pvcpipes.co



Documents

Philippine Construction & Design Magazine July-Aug. 2013 (Issue #7)